Wayne Savings Bancshares and Main Street Financial Services announce merger approval
Wayne Savings Bancshares, Inc. (OTCQX: WAYN) and Main Street Financial Services Corp. (OTCPK: MSWV), in a landmark announcement, have received the green light from the Federal Reserve Bank, the Federal Deposit Insurance Corp., the Ohio Division of Financial Institutions, and the West Virginia Board of Banking and Financial Institutions for a merger that is set to reshape the community banking landscape. This strategic move will see Wayne merge with and into Main Street, followed by the merger of Main Street Bank Corp. with and into Wayne Savings Community Bank.
With an all-stock transaction valued at approximately $68 million, or $30.53 per Wayne share based on Main Street’s stock price of $17.50 as of February 22, 2023, this merger is not just a fusion of two banks but a significant step towards creating a formidable community banking entity with assets surpassing $1.3 billion. The pro forma assets of the combined entity are expected to be around $1.35 billion, with a combined market capitalization of approximately $130 million. This merger will extend the retail and lending presence from Wooster, Ohio, to Wheeling, West Virginia, covering major metropolitan areas like Cleveland, Akron, Canton, Youngstown, and Pittsburgh.
The combined company will boast 18 branches, positioning itself as a premier community bank offering enhanced products and services while continuing to deliver superior customer service, personalized financial solutions, and strong community support. This merger is poised to create meaningful synergies, leading to significant earnings per share (EPS) accretion for shareholders of both companies.
Mark Witmer, Executive Chairman of Wayne, expressed enthusiasm about the merger, highlighting the aligned vision of the two organizations and their shared commitment to stakeholders and communities. “We are pleased to have received all required approvals from the Regulatory Authorities. We are progressing as planned, and we anticipate closing the transaction in the second quarter,” Witmer stated.
This merger comes off the back of a record earnings year in 2022 for both institutions, emphasizing their strong cultural alignment and dedication to their shareholders, customers, employees, and communities.
It is expected to close in the second quarter of 2024, subject to the satisfaction of closing considerations, including shareholder approval from both companies.
The merger between Wayne Savings Bancshares, Inc. and Main Street Financial Services Corp. represents a strategic evolution in the community banking sector, signaling a shift towards larger, more capable entities that can offer a wider range of services while maintaining the personal touch and community focus that define community banking. Experts view this merger as a positive move for the industry, promising for both the companies involved and their customers.