Fentura Financial, Inc. has sold its subsidiary West Michigan Community Bank to investors affiliated with Northstar Financial Group, Inc.
THE TRANSACTION
Fentura Financial, Inc. ("Fentura"), based in Fenton, Michigan, completed the sale of West Michigan Community Bank ("West Michigan") to a group of investors affiliated with Northstar Financial Group, Inc. (“Northstar”) on January 31, 2011. Northstar is the holding company for Northstar Bank (Bad Axe, MI) and Seaway Community Bank (Saint Clair, MI).
The sale of West Michigan is anticipated to improve Fentura’s pro forma Tier 1 leverage capital ratio and pro forma total risk-based capital. Also, it is expected that proceeds from the transaction and the future liquidation of nonperforming assets will be utilized to strengthen the capital position of State Bank (a subsidiary of Fentura) and for other general corporate purposes.
Our Client
WEST MICHIGAN COMMUNITY BANK
West Michigan, headquartered in Hudsonville, Michigan, as a subsidiary of Fentura Financial, Inc., had assets of approximately $123 million as of December 31, 2010. West Michigan provides traditional banking services and products through four banking offices serving Ottawa County in west Michigan.
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