Eaton Federal Savings Bank, Charlotte, Mich., and SSBBank, Stockbridge, Mich., have agreed to merge. The deal, expected to be completed in the second quarter, is subject to regulatory approval and the approval of Stockbridge Bancorporation’s shareholders. Stockbridge Bancorporation is the holding company for SSBBank.
According to terms of the deal, shareholders of Stockbridge Bancorporation will receive cash in exchange for their shares. Pricing and other terms of the transaction were not disclosed.
The combined banks will operate under the Eaton Federal name.
Founded in 1937, Eaton Federal currently operates five branches—four in Eaton County and one in Barry County. Upon completion of the merger, it will add two more branches, extending its market area east into Ingham and Livingston counties.
Eaton Federal is a mutual savings bank, owned by its customers.
“Both banks think alike, namely in our devotion to customer service and our conviction that community banking is good for mid-Michigan,” said Tim Jewell, president of Eaton Federal Savings Bank in a news release. “This merger gives community banking a stronger foundation in the region.”
“We are grateful to the community for its support over the past century and more,” said SSBBank Chairman and CEO J. Benjamin Dancer, great-grandson of the bank’s founder. “It has been a privilege serving the financial needs of our customers, and we are delighted they will continue to experience the benefits of community banking under the Eaton Federal name.”
The combined banks will have assets approaching $360 million, deposits of more than $280 million, and loans of more than $225 million.
When the banks combine operations, Eaton Federal will operate seven branches—its five existing branches in Charlotte, Eaton Rapids, Grand Ledge, Nashville and Olivet plus two former SSBBank branches in Gregory and Stockbridge. The current SSBBank branch in Eaton Rapids will be absorbed into the Eaton Federal branch.
Eaton Federal was advised by ProBank Austin with legal counsel from Bodman PLC. Stockbridge Bancorporation obtained a fairness opinion and legal counsel from Gerrish Smith Tuck, PC.