Farmers State Bank announces merger
Info from Farmers State Bank
The boards of directors of Farmers State Bank (FSB) and Fentura Financial, Inc. (Fentura), the holding company for Fenton-based The State Bank, have announced an agreement by which Fentura will acquire FSB for $15.5 million in cash consideration. Based on current shares outstanding, shareholders of FSB will receive $103.33 in cash for each share.
The boards of directors of both financial institutions have unanimously approved the purchase, which will include the acquisition of all FSB’s stock by Fentura.
“I am so pleased to be able to introduce The State Bank to the communities I have served for some 40 years and that this bank has served for nearly 100 years,” said Craig Goodlock, chairman and CEO of FSB. “It is heartening to me to note that The State Bank is actually 24 years older than Farmers State Bank, having been formed in 1898! The State Bank is a well-run, well-performing institution with which I have been familiar throughout much of my career.”
The transaction is contingent on approval by the shareholders of FSB, the Federal Deposit Insurance Corporation, the Michigan Department of Insurance and Financial Services, and the Federal Reserve Bank of Chicago. It is anticipated that closing of the transaction will occur during the fourth quarter of 2021.
“In The State Bank we have found a partner that complements our values, community, and relationships,” added Jeanne Richter, president and CFO of FSB. “Knowing we can bring additional opportunities to our customers while maintaining our focus on customer service and community is what makes this partnership so exciting.”
Upon completion of the transaction, Jeanne Richter will join the senior management team of The State Bank, and Craig Goodlock will retire.
As of March 31, 2021, FSB reported $104 million in assets, $45 million in loans and $95 million in deposits. The State Bank’s branch offices will increase to 20 locations, with the addition of FSB’s offices in Munith, Stockbridge, and Grass Lake.
“The combination of our two community banks will provide a greater suite of both consumer and commercial products, the trust and wealth management products that Farmers State Bank has not been able to offer but are in great demand locally, and expanded online access for opening deposit accounts and completing loan applications,” Goodlock said.
“The residents of our towns, villages, and countryside will be very pleased with what this merged community bank can do for them,” he said.
An investor presentation providing more details on the transaction can be found on Fentura’s website at fentura.com.
