Standard Federal's FSB Deal Boosts Kalamazoo Franchise
Mills, Steve, American Banker
Standard Federal Bancorp. said its $27.15 million agreement to acquire FSB Financial Corp. will bolster its presence in the hotly contested Kalamazoo, Mich., market.
The all-cash deal, which was announced Friday, will bring $13 billion- asset Standard Federal four branches. But the Troy, Mich.-based bank plans to close two FSB branches and one of its own, leaving it with a dozen offices in Kalamazoo.
Once the deal is complete, Standard Federal will have $525 million of deposits in the Kalamazoo area.
That would put it second to First of America Bank Corp., the leader in its home city with about $750 million of deposits, and ahead of Old Kent Financial Corp. Old Kent has about $500 million of deposits there.
"If we had a choice between us having those deposits or one of our competitors having them, obviously, we'd rather have them," Thomas H. Ricketts, Standard Federal's chairman, president, and chief executive, said in an interview Friday. "Any time you can enhance your franchise in a community, it's worth it."
Standard Federal, the holding company for Standard Federal Bank, said it would pay $23. …