Wayne Savings Bancshares merges with Main Street Financial Services, bolstering community banking

In a significant move in the community banking sector, Wayne Savings Bancshares, Inc. (OTCQX: WAYN) and Main Street Financial Services Corp. (OTCPK: MSWV) have officially completed their previously announced merger. The merged entity, which will be known as Main Street Bank, marks a milestone in the expansion and consolidation of community banking services across several key metropolitan areas in Ohio and West Virginia.

Details of the Merger

The closing of this merger follows the finalization of all necessary bank regulatory approvals announced on March 15, 2024, and the Wayne shareholder approval on May 10, 2024. The transaction, valued at approximately $68 million, or $30.53 per Wayne share based on Main Street’s closing stock price of $17.50 as of February 22, 2023, represents a strategic alignment of two prominent banking brands. This all-stock deal brings together two community-focused institutions with a new combined pro forma asset value estimated at around $1.35 billion and a total market capitalization of approximately $130 million.

Integration and Brand Strategy

Initially, Main Street Bank will operate under both the Wayne Savings and Main Street Bank brands to ensure a seamless transition for customers, who are advised to continue their banking activities through their respective branches and websites. The full integration of systems and services is slated for completion later in the second quarter of 2024, including a unification of branding under the Main Street Bank name.

Financial and Legal Advisory

Piper Sandler & Co. and Raymond James & Associates played pivotal roles as financial advisors to Wayne and Main Street, respectively, each delivering a fairness opinion to their respective boards. Legal counsel for the transaction was provided by Dinsmore & Shohl LLP for Wayne and Jackson Kelly PLLC for Main Street, ensuring compliance and due diligence throughout the merger process.

Future Prospects and Community Impact

With the merger, Main Street Bank will expand its network to 18 branches, enhancing its retail and lending presence across major metropolitan areas including Cleveland, Akron, Canton, Youngstown, and Pittsburgh. This expansion is not only expected to provide enhanced products and services but also to continue the tradition of superior customer service and strong community involvement that both banks have upheld.

Mark R. Witmer, now the Executive Chairman of Main Street, expressed enthusiasm about the merger: “This is an exciting day for us as we combine two community banks with a commitment to bring lasting value to the customers we proudly serve. We are grateful for the support of our shareholders throughout this transaction and are excited for the combined talent and resources at our organizations as we look to the future.”

This merger is anticipated to create meaningful synergies that will lead to significant earnings per share (EPS) accretion for shareholders of both entities. The strategic consolidation is expected to enhance competitive advantage and financial stability, setting a strong precedent in the community banking sector for similar mergers and acquisitions.