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In Michigan, SSBBank merging with Eaton FSB

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In Michigan, SSBBank merging with Eaton FSB

In Michigan, Charlotte-based Eaton Federal Savings Bank and Stockbridge-based Stockbridge Bancorp. Inc. inked a definitive merger deal, under which SSBBank will merge with Eaton Federal.

Stockbridge Bancorp. shareholders will receive cash in exchange for their shares. Other financial terms of the deal were not disclosed. For reference, SNL valuations for bank and thrift targets in the Midwest between Feb. 21, 2017, and Feb. 21, 2018, averaged 156.93% of book, 162.45% of tangible book and had a median of 19.45x last-12-months earnings, on an aggregate basis.

The deal — subject to regulatory and Stockbridge shareholders' approvals — is expected to close in the second quarter.

The combined banks will operate as Eaton Federal and will have seven branches. SSBBank's Eaton Rapids, Mich., branch will be absorbed into an Eaton Federal branch also located in the area. In Michigan, Eaton Federal will expand in Eaton County by one branch, to be ranked first with a 8.01% share of approximately $1.18 billion in total market deposits. It will enter Ingham County with one branch, where it will rank No. 14 with a 0.8% share of approximately $4.55 billion in total market deposits, and enter Livingston County with one branch, where it will rank No. 15 with a 0.48% share of approximately $2.79 billion in total market deposits.

As of Dec. 31, 2017, SSBBank had $66.3 million in assets. The combined banks will have about $360 million in assets, more than $280 million in deposits and more than $225 million in loans.

ProBank Austin advised Eaton Federal and Bodman PLC provided legal counsel for the company. Stockbridge, on the other hand, received a fairness opinion and legal counsel from Gerrish Smith Tuck PC.

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