Bank plans $14M acquisition
A Michigan bank with a presence in the region intends to acquire another bank in the state.
Ithaca-based Commercial National Financial Corp. (Pink Sheets: CEFC), parent company of Commercial Bank, and Mason-based Capital Directions (Pink Sheets: CTDN), parent of Mason State Bank, said today that they have entered a “definitive merger agreement.”
In West Michigan, Commercial Bank operates branches in Greenville, Hastings and Lake Odessa, as well as a lending office in Grand Rapids.
With the agreement, Commercial National Financial will acquire all of the outstanding Capital Directions stock in a $14.03 million stock-and-cash deal.
The deal equates to $36.07 per share.
The combined company will have assets of more than $525 million and 15 branches and lending offices.
After the transaction, Mason State Bank will merge into Commercial Bank.
The deal is expected to close in the fourth quarter of 2016, subject to the "receipt of regulatory approval and satisfaction of other customary closing conditions," including approval of Capital Directions' shareholders.
“We are very excited to expand into Mason and the greater Lansing area, along with the opportunity to partner with an organization that has demonstrated a true commitment to community banking for 130 years,” Commercial Bank President and CEO Kevin Collison said.
“We take great pride in understanding the needs of our customers in all of our markets. With our combined operations and increased assets, we intend to expand product offerings to our customers, while continuing to provide outstanding service and retaining the community focus that is at the core of our two banks.”
Mason State Bank CEO and Director Timothy Gaylord will join the Commercial National Financial and Commercial Bank boards upon completion of the deal.
“This transaction offers greater opportunities to our shareholders, employees, customers and the communities we serve,” Gaylord said. “We are extremely pleased to join with a partner like Commercial Bank that shares our commitment to community banking.”
Commercial National Financial is being advised by Boenning & Scattergod and Foster Swift Collins & Smith.
Capital Directions is being advised by Donnelly Penman & Partners and Howard & Howard.
Commercial Bank was founded in Ithaca in 1893 and has 11 total branch locations and lending offices in Michigan.
Founded in 1886 as The Farmer’s Bank of Mason, Mason State Bank has four branches in Ingham County.