BY PHIL CUSTODIO
Clarkston News Editor
When its merger with Clarkston State Bank is complete, Waterford Bank will have its first location in Waterford, Mich.
The bank’s name is a coincidence – Waterford Bank was created and is based in Toledo, Ohio.
“We are proud to combine with Clarkston State Bank,” stated Mike Miller, Waterford’s chairman and CEO. “This is a unique opportunity consistent with our Strategic Plan to expand to larger, metro markets. Clarkston State Bank operates with a very similar business model and culture, and we expect to make significant investments to pursue future growth. Clarkston and Waterford share a strong focus and commitment to community development and customers, further signifying they are the right partner for us. We are thrilled that Grant Smith and his team will be leading this effort.”
Clarkston State Bank, which has locations in Clarkston and Waterford, will be renamed Waterford Bank when the merger is complete.
“Waterford’s business model emphasizing the delivery of exceptional service and value fits perfectly with our approach to community banking,” said Grant Smith, president and CEO of Clarkston State Bank. “I am very proud of what we have accomplished at Clarkston State Bank and the deep customer relationships we have built in our community. We believe combining with Waterford Bank will enable us to further enhance the banking experience and capabilities we can provide to our customers.”
Many new services and products will be available after the merger, including a larger commercial and individual loan program, access to an extensive network of ATMs, and residential mortgages, Smith said.
“The great thing is we’ve received great feedback from customers – they’re extremely excited,” he said. “We need to get bigger to serve them.”
The two banks have been working together for the past years, with Waterford holding $5 million of debt from CSB’s holding company, Clarkston Financial Corp.
“We were very careful about who we chose to work with,” Smith said. “We know each other – we have very similar cultures. We’re both top performing banks, operating at a very high level.”
Clarkston State Bank originally opened on Main Street in 1911. It was closed by owner National Bank of Detroit in 1997, but reopened as a local bank in 1998. It has total assets of $219 million and tangible common equity of $18.4 million as of March 31, 2019.
Waterford Bank opened as a new institution in 2007, serving private businesses and local professionals in the Toledo area. It is privately-owned with 479 shareholders of record, assets of $748 million and tangible common equity of $81.3 million as of March 31, 2019.
The boards of directors of Waterford and Clarkston unanimously approved the agreement. The merger is subject to regulatory and shareholder approval. Upon closing, 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. Shareholders of Clarkston owning less than 50,000 shares will receive cash consideration, subject to no more than 25% of Clarkston shares being acquired for cash. All other Clarkston shareholders will receive stock consideration. Based on 3,309,156 Clarkston shares outstanding, the aggregate transaction value is estimated at approximately $34.8 million.