Toledo-based Waterford Bancorp Inc. has agreed to acquire Clarkston Financial Corp., the bank holding company for Clarkston State Bank, in a deal valued at $34.8 million. The combined ba inks will operate under the Waterford name.
Clarkston, founded in 1998, has total assets of $219 million and operates two offices in Oakland County. Waterford Bank, founded in 2007, has assets of $748 million.
According to the deal terms, each share of Clarkston common stock will be exchanged for either 0.1196 shares of Waterford common stock or at least $10.52 per share in cash. Clarkston shareholders owning less than 50,000 shares will receive cash, with no more than 25% of Clarkston shares being acquired for cash. All other Clarkston shareholders will receive stock.
“This is a unique opportunity consistent with our strategic plan to expand to larger, metro markets," Waterford CEO Mike Miller said in a statement."Clarkston State Bank operates with a very similar business model and culture, and we expect to make significant investments to pursue future growth."
The boards of b other banks unanimously approved the deal. Two Clarkston directors will join the Waterford board.
Waterford was advised by ProBank Austin as financial advisor and Shumaker Loop & Kendrick, LLP, as legal counsel. Clarkston was advised by Donnelly Penman & Partners as financial advisor and Varnum LLP as legal counsel.