FIRST OF AMERICA BANK CORPORATION COMPLETES ACQUISITION OF SECURITY BANCORP, INC.
FIRST OF AMERICA BANK CORPORATION COMPLETES ACQUISITION OF SECURITY BANCORP, INC. KALAMAZOO, Mich., May 1 /PRNewswire/ -- First of America Bank Corporation (NYSE: FOA) completed its acquisition of Security Bancorp, Inc. (NASDAQ-NMS: SECB) today, announced Daniel R. Smith, First of America chairman and chief executive officer. A definitive agreement to acquire Security, a Southgate, Mich.-based bank holding company with assets of $2.8 billion, was announced Sept. 12, 1991. In February 1992, shareholders of both companies voted to approve the acquisition. According to the terms of the transaction, the acquisition will be accounted for as a pooling of interests with each common share of Security exchanged tax free for 1.3232 common shares of First of America common stock, and each preferred share of Security exchanged tax free for 2.9955 shares of First of America common stock. The exchange ratios were determined based on the average of the daily closing sales prices of First of America common stock on the New York Stock Exchange during the March 24 through April 21, 1992 valuation period. Approximately 17,675,000 shares of First of America common stock will be issued in the transaction. "First of America's acquisition of Security," said Smith, "will greatly benefit our shareholders, customers and the communities we serve. Over the years, our acquisition strategy has assisted in building shareholder value. We believe this type of in-market merger offers one of the better routes to enhancing efficiencies and profitability. The completion of our acquisition of Security and the year-end 1991 acquisition of Champion Federal Savings and Loan Association in Illinois present opportunities for continued market expansion, cost savings and earnings growth." Security operates 79 banking offices in the metropolitan Detroit area. Its credit card operation with $602 million in receivables is one of the 50 largest portfolios in the United States. As a result of the acquisition of Security, First of America's credit card outstandings will represent 6 percent of the total loan portfolio. Andrew R. Brodhun will become chairman of Security's lead bank in Southgate, and will play a significant role in the consolidation of Security's other operations with First of America. Additionally, two Security directors will be added to First of America's board of directors. First of America Bank Corporation, headquartered in Kalamazoo, is one of the largest bank holding companies in the Midwest with assets of $16.7 billion at March 31. With the completion of its acquisition of Security Bancorp, Inc., total assets exceed $19 billion. First of America has 566 offices in Michigan, Indiana and Illinois that serve over 300 midwestern communities. The banks engage in commercial banking, retail banking and mortgage banking, and provide trust, financial data processing and other financial services. Based on net income, profitability and size of franchise, First of America ranks among the top 40 banking companies in the United States. -0- 5/1/92 /CONTACT: Samuel G. Stone, 616-376-7008, Jennifer D. Cox, 616-376-7115, or Michael A. Lindley, 616-376-7272, all of First of America Bank Corporation/ (FOA SECB) CO: First of America Bank Corporation; Security Bancorp, Inc. ST: Michigan IN: FIN SU: TNM END
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|Date:||May 1, 1992|
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