STANDARD FEDERAL BANK AND INTERFIRST BANKCORP, INC. EXECUTE DEFINITIVE MERGER AGREEMENT
TROY, Mich., July 16 /PRNewswire/ -- Thomas R. Ricketts, chairman, president and chief executive officer of Standard Federal Bank (NYSE: SFB), and Stanley H. Rhodes, chairman and chief executive officer of InterFirst Bankcorp, Inc. (NASDAQ-NMS: INFB), announced today the execution of a definitive agreement under the terms of which Standard Federal Bank intends to acquire InterFirst Bankcorp, Inc. for a currently projected purchase price of approximately $13.65 per share in cash. The estimated purchase price is subject to change based on InterFirst's results of operations and adjustments to the value of InterFirst's net assets due to changes in market conditions. The parties previously announced the signing of a non-binding letter of intent on May 7, 1993. The acquisition is subject to regulatory approval from the Office of Thrift Supervision (the "OTS") and approval by the shareholders of InterFirst. Application for OTS approval is expected to be made within the next two weeks and acted upon by the OTS within 90 days thereafter. The approval of InterFirst shareholders will be sought and a closing of the transaction will be scheduled within 30 to 60 days after receipt of OTS approval. InterFirst has 2,279,530 shares of common stock outstanding. At the projected purchase price of $13.65 per share, the entire transaction, including payments to be made with respect to outstanding stock options issued by InterFirst, has an estimated value of approximately $31.2 million. InterFirst has also granted Standard Federal an option to purchase up to 420,000 shares of newly issued common stock, subject to certain terms and conditions. InterFirst is a unitary savings and loan holding company organized in 1990. Its principal operating subsidiary is InterFirst Federal Savings Bank, an FDIC-insured institution founded in 1890. The bank is headquartered in Ann Arbor, Mich., and has five full-service offices serving the residents of Washtenaw County. At June 30, 1993, it had deposits of $127.8 million. InterFirst's principal business activity is wholesale mortgage banking which it conducts in 25 states. During the mortgage banking which it conducts in 25 states. During the first six months of 1993, it originated and purchased a total of $767 million of residential mortgage loans. At June 30, 1993, the bank had a portfolio of loans serviced for others of approximately $1.2 billion, and InterFirst had assets of $245 million. Standard Federal Bank, headquartered in Troy, is an FDIC-insured savings institution. Standard Federal is the Midwest's largest thrift institution. The bank operates a retail franchise of 118 banking centers, seven loan production offices and 200 ATMs located throughout southern Michigan, northern Indiana and northwestern Ohio. At June 30, 1993, the bank had assets of $9.8 billion, deposits of $6.6 billion and stockholders' equity of $656.1 million. Standard closed $1.9 billion in mortgage loans during the first half of 1993.
Net income for the six- month period was $54.3 million, representing a 1.12-percent return on average assets.
Commenting on the proposed transaction, Ricketts stated, "We are very pleased at the prospect of having InterFirst become part of Standard Federal. The acquisition of InterFirst will expand our existing branch network in southeastern Michigan, increase our mortgage loan servicing activities and enable us to enter into the wholesale mortgage banking business in 25 states." Rhodes added, "We look forward to the merger of InterFirst with Standard. We believe the transaction is in the best interest of InterFirst and its stockholders. Further, our customers will benefit from our merger with Standard Federal, a well-capitalized, multi- billion-dollar company with a long tradition of providing quality service and products to customers in the communities it serves." -0- 7/16/93 /CONTACT: Joseph E. Krul, senior vice president and chief financial officer, shareholder relations, Standard Federal Bank, 313-637-2530; or Stanley H. Rhodes, chairman, InterFirst Bankcorp, 313-665-3700/ (SFB INFB)
CO: Standard Federal Bank; InterFirst Bankcorp, Inc. ST: Michigan IN: FIN SU: TNM
JG-SB -- DE021 -- 2573 07/16/93 15:18 EDT
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|Date:||Jul 16, 1993|
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