Printer Friendly


 TROY, Mich., Oct. 26 /PRNewswire/ -- Thomas R. Ricketts, chairman, president and chief executive officer of Standard Federal Bank, and Robert N. Shuster, president and chief executive officer of Central Holding Company, announced today the execution of a definitive agreement under the terms of which Standard Federal Bank intends to acquire Central Holding Company for a purchase price of $5.50 per share in cash.
 The acquisition is subject to approval by the shareholders of Central Holding and to receipt of regulatory approval from the Office of Thrift Supervision (the "OTS"). Application for OTS approval is expected to be made within 30 days and acted upon by the OTS within 90 days thereafter. The closing of the transaction will be scheduled within 30 to 60 days after receipt of OTS approval.
 At the purchase price of $5.50 per share, the entire transaction, including payments to be made with respect to outstanding stock options issued by Central Holding, has a value of $21.3 million. Central Holding also has granted Standard Federal an option to purchase up to 960,000 shares of newly issued common stock, subject to certain terms and conditions. The option is exercisable at $3.00 per share in the event of a proposed acquisition of Central Holding by another party.
 Central Holding (NASDAQ-NMS: CHOL) is a unitary savings and loan holding company organized under the laws of the state of Michigan. Its principal operating subsidiary is Colonial Central Savings Bank, F.S.B., an FDIC-insured savings institution headquartered in Clinton Township, Mich. The bank has six full-service branch offices located in southeastern Michigan. Central Holding also operates a mortgage banking business in Colorado, Indiana and Michigan. At Sept. 30, 1993, the bank had $191.4 million in deposits and Central Holding had total assets of $238.5 million and stockholders' equity of $12.4 million (i.e., 5.2 percent of assets). Central Holding's net income for its fiscal year ended June 30, 1993, totaled $1.4 million, representing $0.37 per share. For the quarter ended Sept. 30, 1993, Central Holding reported net income of $458,000, or $0.12 per share. In August of this year, Central Holding announced that it had retained an investment banking firm to explore alternatives to maximize shareholder value -- a process which has culminated with the signing of the definitive agreement with Standard.
 Standard Federal Bank (NYSE: SFB), headquartered in Troy, is an FDIC-insured savings institution. Standard is the Midwest's largest thrift institution. It operates a retail franchise of 118 banking centers, seven loan production offices and 202 ATMs located throughout southern Michigan, northern Indiana and northwestern Ohio. At Sept. 30, 1993, the bank had assets of $9.8 billion, deposits of $6.7 billion and stockholders' equity of $683.1 million (i.e., 6.98 percent of assets). Standard closed $2.93 billion in single-family mortgage loans during the first nine months of 1993. Net income for the nine-month period was $84.7 million, or $2.64 per share, which represents annualized returns on average assets and stockholders' equity of 1.15 percent and 17.56 percent, respectively.
 Commenting on the proposed transaction, Ricketts stated, "We are very pleased at the prospect of Central Holding Company becoming a part of Standard Federal. The acquisition, which is anticipated to be accretive to Standard Federal's 1994 net earnings, will expand our existing branch network in southeastern Michigan. We look forward to the opportunity to better serve the retail banking needs of customers in this area."
 Shuster added, "We look forward to the merger of Central Holding Company with Standard. We believe the transaction is in the best interest of Central Holding Company and its stockholders. The two companies have complementary market areas and similar product lines. Our customers will be well-served by the larger combined company, which will continue Central Holding's tradition of providing quality service and products to customers in the communities it serves."
 -0- 10/26/93
 /CONTACT: Joseph Krul, senior vice president and chief financial officer of Standard Federal Bank, 313-637-2530; or Robert N. Shuster, president and chief executive officer of Central Holding Company, 313-790-5122/

CO: Standard Federal Bank; Central Holding Company ST: Michigan IN: FIN SU: TNM

KE -- DE013 -- 6847 10/26/93 11:18 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 26, 1993

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters