Firm Buying West Michigan Financial
Fentura will pay $13 million in cash for all of WMFC’s outstanding stock, and the transaction will be funded, in part, by Fentura’s proposed issuance and sale of pooled trust preferred securities.
The proposed acquisition awaits WMFC shareholder and regulatory approval.
WMFC is a one-bank holding company for West Michigan Community Bank, which will become Fentura Financial’s third affiliate bank.
Fentura’s existing affiliates are The State Bank, which is headquartered in Fenton and has offices in Fenton, Linden, Holly and Grand Blanc, and Davison State Bank in Davison, which has offices only in Davison.
The acquisition is expected to increase Fentura’s assets from $425 million as of Sept. 30 to approximately $550 million after the merger is completed.
Fentura Financial President and CEO Donald L Grill said the two companies share similar community banking philosophies and similar banking markets. He said the merger is expected to create expanded product offerings for customers and new opportunities for employees of both financial institutions.
“We believe the transaction provides the best long-term opportunity for the future growth and profitability for West Michigan Community Bank,” added WMFC Chairman and CEO James Fredericks.
Fentura Financial shares are publicly traded over the counter under the FETM trading symbol.The Over-The-Counter Bulletin Board is a regulated quotation service that displays real-time quotes, last-sale prices and volume information in over-the-counter equity securities.