FIRST OF AMERICA BANK CORPORATION TO ACQUIRE LGF BANCORP INC.
KALAMAZOO, Mich., Oct. 12 /PRNewswire/ -- First of America Bank Corporation (NYSE: FOA), based in Kalamazoo, has entered into a definitive agreement to acquire LGF Bancorp Inc., based in LaGrange, Ill. With $409 million in assets LGF Bancorp Inc. and its principal subsidiary, LaGrange Federal Savings & Loan Association, serve DuPage and southwest Cook counties with four offices. Richard D. Klein, vice chairman, First of America Bank Corporation, stated, "LaGrange Federal Savings & Loan's attractive locations enhance our growing office network in the greater Chicago suburban market." J. Edward Weishel, chairman, chief executive officer and president, LGF Bancorp Inc., commented, "We are pleased at the prospect of becoming part of First of America and are enthusiastic that with its greater resources, we will be able to serve our customers better with a wider array of products and services." The transaction will be based on an exchange of 0.8754 shares of First of America Common Stock for each share of LGF Common Stock, and it is expected that the transaction will be accounted for as a pooling of interests. LGF has also issued a warrant to allow First of America to purchase shares of LGF under certain conditions. The transaction is valued at approximately $36 per share or over $67 million based on First of America's recent stock price. Affiliation is expected to be completed by the end of the first quarter, 1994. Klein commented, "LGF Bancorp operates in excellent markets and has developed a fine reputation for serving the needs of its customers. LGF Bancorp is an ideal in-market acquisition for us and with our existing Operations Center already located in Chicago, adding LGF will allow us to maximize operation and processing efficiencies quickly." LGF Bancorp Inc. and its subsidiary, LaGrange Federal Savings & Loan have offices in LaGrange, LaGrange Park, Countryside and Naperville. LaGrange Federal was founded in 1925. First of America currently operates nine banks in Illinois with over $7 billion in assets and over $6 billion in deposits. With 130 offices located throughout Illinois prior to the addition of LGF's offices, First of America has the most extensive branch network in the state. First of America Bank Corporation, headquartered in Kalamazoo, is one of the largest bank holding companies in the Midwest with over $21 billion in assets. First of America has 574 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 and other financial services. Based on net income, profitability and size of franchise, First of America is ranked among the top 35 banking companies in the United States. -0- 10/12/93 /CONTACT: Sam Stone, senior vice president, 616-376-7008, or Tony Thompson, public and media relations manager, 616-376-7266, both of First of America Bank Corporation/ (FOA)
CO: First of America Bank Corporation; LGF Bancorp Inc. ST: Michigan, Illinois IN: FIN SU: TNM
JG -- DE023 -- 1311 10/12/93 16:58 EDT
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|Date:||Oct 12, 1993|
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