Investment Banking - Sturgis Bancorp, Inc.

Transactions | Banking

Client: Sturgis Bancorp, Inc.
Industry: Banking
Transaction Type: Mergers & Acquisitions
Role: Buy-Side Advisor

  • Sturgis Bancorp, Inc. (OTCQB: “STBI”) is the holding company for Sturgis Bank & Trust Company, a $318 million asset bank with eleven branches located in Southwestern Michigan.
  • The West Michigan Savings Bank (“WMSB”) was a $35 million asset state savings bank operating out of a sole location in Bangor, Michigan.
  • Under the terms of the consolidation agreement, WMSB shareholders received $4.0 million in an all-cash transaction, which was initially subject to adjustment in the event that WMSB does not maintain a specified level of shareholders’ equity when the transaction closes or if the costs of funding and terminating its pension plan exceed a specified amount.
  • The addition of WMSB is a natural, synergistic expansion of STBI’s existing presence in Van Buren County.  Upon completion of the transaction, STBI will move into the top 5 ranking of depository franchises by size in the county.
  • Pro Forma for the transaction, the combined company has approximately $350 million in assets, $255 million in gross loans and $270 million in total deposits.
  • The transaction closed on April 6, 2015.
  • Boenning served as financial advisor to Sturgis Bancorp, Inc.