Fentura Financial Inc. completed the acquisition of Community Bancorp Inc. (Saint Charles, MI).
January 05, 2017
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Fentura Financial Inc. (OTCBB:FETM) entered into a definitive agreement to acquire Community Bancorp Inc. (Saint Charles, MI) for $21.6 million in cash on March 23, 2016. Under the terms of the agreement, Fentura Financial Inc. will pay $68.75 for every share of Community Bancorp Inc. (Saint Charles, MI). The transaction will be partly financed through the placement of 1,071,428 shares for an aggregate price of $15 million. As on December 12, 2016, Fentura closed the placement of shares. Post-acquisition, Ronald L. Justice will continue to serve as President and Chief Executive Officer of Fentura Financial, Inc. and The State Bank. John C. Wendling, Community's President and Chief Executive Officer, is expected to serve as a Senior Officer of The State Bank. The deal is contingent on approval by the shareholders of Community Bancorp, Inc., the Federal Reserve Bank of Chicago, the Federal Deposit Insurance Corporation, and the Michigan Department of Insurance and Financial Services. The Boards of Directors of Fentura Financial Inc. and Community Bancorp Inc. have unanimously approved the transaction.
As on December 15, 2016, Fentura Financial received the necessary regulatory approvals to consummate its acquisition of Community Bancorp. It is anticipated that the transaction will occur during the third quarter of 2016. As of December 15, 2016, Fentura expects the transaction to close later this month. Fentura Financial expects the transaction to be significantly accretive to earnings in year one, and anticipates earn back of the tangible book value dilution in less than three years. Boenning & Scattergood, Inc. acted as the financial advisor for Community Bancorp Inc. (Saint Charles, MI). Bodman PLC acted as the legal advisor for Community Bancorp Inc. (Saint Charles, MI). Donnelly Penman & Partners acted as the financial advisor for Fentura Financial Inc. Howard & Howard Attorneys, PC acted as the legal advisor for Fentura Financial Inc.
Fentura Financial Inc. (OTCBB:FETM) completed the acquisition of Community Bancorp Inc. (Saint Charles, MI) on January 6, 2017.
Fentura Financial, Inc. is a financial services company. The Company operates through its subsidiary, the State Bank. The State Bank is a full-service community bank, which offers a range of banking services to individuals, small business and government entities. The State Bankâs commercial department provides a range of products including lines of credit, term loans, mortgages, small business administration loans and a range of cash management products. The retail department offers personal checking, savings, time and individual retirement account deposit accounts and an array of loan products including home equity, auto and personal loans. The residential loan department offers construction, purchase and refinance residential mortgage loans. The wealth management department offers a full-service suite of trust and portfolio management services. It operates approximately 20 service branches serving Bay, Genesee, Ingham, Jackson, Livingston, Oakland, Saginaw, and Shiawassee counties.
FENTURA FINANCIAL, INC. 
