PLAN MERGERStephenson National Bank of Marinette and Bank North announced on Thursday, Feb. 6 that they will merge. The merger will take place sometime in the fourth quarter of 2014. This will be beneficial to our customers, the community and our stock holders according to Jerry Schmidt, president of Bank North. Schmidt along with chariman of the board, Bob Barron, will servce as directors of the Stephenson National Bank. Shown left to right: Bank North President, Jerry Schmidt, Chairman of the Board Bank North Bob Barron, Stephenson National Bank & Trust Chairman of the Board John Reinke and President Dan Peterson.
Area Banks: SNB & BN Plan Merger
The Stephenson National Bank & Trust (Stephenson National Bancorp, Inc.) headquartered in Marinette, and Bank North (PWB Bancshares) headquartered in Wausaukee, announced Thursday, Feb. 6, that they have entered into a definitive agreement under which Bank North (PWB Bancshares) will merge into Stephenson National Bank Bancorp, Inc. The agreement was signed on Wednesday, Feb. 5.
Shareholders of Bank North (BN) will need to approve the merger at a special stockholders meeting scheduled for 5 p.m. Tuesday, April 22, at Newinghams Supper Club in Wausaukee. Shareholder approval could then be done in 60 to 90 days. On or about March 5 a letter with a ballot will be sent to shareholders who will vote for or against the merger.
SNB will pay BN shareholders cash for their stock estimated at $716.47 per share for a total of about $16.59 million. BN has 23,106 shares issued and 140 stockholders.
The price per share is as of Dec. 31, 2013 and could be increased by the five months of BN operation so far in 2014 and months before the merger is approved.
The Board of Directors of BN have unanimously approved the agreement and plan of the Holding Company Merger and will be recommending it to shareholders.
BN board of directors had made their decision after several months of strategic planning and careful deliberation. Several factors included increased regulatory and compliance burden on small community banks caused by the Dodd-Frank Bill, management succession plans and prospect for additional products and services for customers and the community.
The merger, subject to regulatory approval is expected in the fourth quarter of this year. It would result in 8 community focused banking offices and proforma assets of over $430 million, plus a Trust and Investment Department with over $440 million in assets under management.
With approval of the merger Gerald Schmidt, Bank North president and chief executive officer, and Bob Barron, BN board chairman, will become members of the SNB board of directors.
Until finalization of the merger, officers of both banks will remain the same and operate independently. All bank customers will receive ample notice of the expanded line of services and any potential changes that may affect them. In most cases, account transfers will be seamless and require little or no action on the part of customers.
Schmidt reported negotiations began in August 2013 and a law firm was retained to determine the pluses and minuses for BN. The study was then presented to the entire BN Board in November and a letter of intent to merge was signed.
Also consideration was given to many factors including management succession and additional products and services for customers. He said of the merger Banking just got better, as two of the best just joined forces!
He further reported the price was good, all employees will have jobs and no pay cuts.
The Stephenson National Bank & Trust (SNB) is a 139-year old independent community bank with $800 million in Bank, Mortgage, and Trust & Investment assets under management. Offices are located in Marinette and Oconto, and Menominee, Mich. with a Trust & Investment Office in Marquette, Mich.
Bank North (BN) is a 111-year old independent community bank with assets of $125 million. Offices are located in Wausaukee, two in Crivitz, and one each in Amberg and Pembine.
I am very excited about this partnership of two strong, local, community focused banks, said Dan Peterson, president and chief executive officer of Stephenson National Bank & Trust. Both banks share similar cultures, local decision-making, and a high commitment to our customers, communities, and employees.
We have always respected SNB as a competitor and admired their commitment to the communities they serve, stated Schmidt, BN president and chief executive officer. Bringing our organization together will serve to increase our ability to help grow area businesses, expand our banking products and provide trust services to our customers, while continuing the commitment to support our local communities.
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