FETM - Fentura Financial to acquire Farmers State Bank for $15.5M

Fentura Financial (FETM), the holding company for Fenton-based The State Bank will acquire Farmers State Bank, based in Munith for $15.5M in cash.Based on current shares outstanding, shareholders of FSB will receive $103.33 in cash for each share. Fentura expects EPS to be enhanced by 12-14% in each of the first two years following closing.The transaction is expected to dilute tangible BV by 6.1% at closing but anticipates earn back in less than four years using the crossover method.The State Bank’s branch offices will increase to 20 locations, with the addition of FSB’s offices in Munith, Stockbridge and Grass Lake.Upon completion of the transaction, Jeanne Richter will join the senior management team of The State Bank and Craig Goodlock will retire. Closing of the transaction will occur during Q4 2021.

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Fentura Financial to acquire Farmers State Bank for $15.5M