LGF BANCORP ENTERS INTO AGREEMENT TO BE ACQUIRED BY FIRST OF AMERICA BANK CORP.
LA GRANGE, Ill, Oct. 12 /PRNewswire/ -- LGF Bancorp, Inc. (NASDAQ: LGFB) based in La Grange, Ill., has entered into a definitive agreement to be acquired by First of America Bank Corp. (NYSE: FOA) based in Kalamazoo, Mich. 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 for each share of LGF common stock, over $67 million based on First of America's recent stock price. The affiliation, expected to be completed by the end of the first quarter of 1994, is subject to the approval of LGF shareholders, board of directors of First of America, regulators and various other conditions. J. Edward Weishel, chairman, chief executive officer, and president of LGF Bancorp, Inc., commented, "We are pleased at the prospect of becoming a 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." Richard D. Klein, vice chairman, First of America Bank Corp., stated, "La Grange Federal Savings & Loan's attractive locations enhance our growing office network in the greater Chicago suburban market. La Grange Federal has developed a fine reputation of serving its customers and is an ideal in-market affiliation for us. With our existing operations center already located in Chicago, adding LGF will allow us to maximize operational 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, and converted to stock ownership in 1992. First of America currently operates nine banks in Illinois with over $7 billion in assets and over $6 billion in deposits. With 131 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 575 offices in Michigan, Indiana and Illinois that serve over 300 Midwestern communities. Based on net income, profitability and size of franchise, First of America is ranked among the top 35 banking companies in the United States. Capital Resources Group, Inc. of Washington, D.C., is serving as LGF's investment banker and financial advisor for the transaction. -0- 10/12/93 /CONTACT: Cleo O'Donnell of LGF Bancorp, 708-352-3671/ (LGFB FOA)
CO: LGF Bancorp, Inc.; First of America Bank Corp. ST: Illinois IN: FIN SU: TNM
TM -- NY114 -- 1383 10/12/93 19:05 EDT
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|Date:||Oct 12, 1993|
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