Livonia, Ironwood, MI (December 30, 2024) |
Zeal Credit Union (“Zeal”) of Livonia, MI, Gogebic Range Bank of Ironwood, MI and West End Financial Corp., the holding company of Gogebic Range Bank, jointly announced today that they have entered into a definitive agreement whereby Zeal will purchase substantially all of the assets and liabilities of Gogebic Range Bank in an all-cash transaction.
While the agreement is contingent on obtaining regulatory and West End Financial Corp. stockholder approvals, the proposed transaction has been approved by the boards of directors of both institutions. The transaction is expected to close by the end of the third quarter of 2025. Following the completion of the transaction, Gogebic Range Bank and West End Financial Corp. will liquidate and distribute their remaining assets to its stockholders. When the purchase is complete, Zeal will have approximately $975 million in assets and increase its footprint into the Upper Peninsula of Michigan with a total of 16 branches. Zeal is expected to keep predominately all the employees and all the branches of, while investing in the local communities served by, Gogebic Range Bank.
Julie Kreinbring, President & CEO of Zeal stated “We are excited for the opportunity to partner with Gogebic Range Bank and to improve access to our member benefits in the Upper Peninsula of Michigan and other contiguous market areas. Gogebic is a well-managed bank, and we look forward to welcoming their customers and employees into our family. Gogebic’s customers will become members of Zeal with full access to our wide array of products and services and our members will have expanded locations in the Upper Peninsula.”
Neil Beckman, President & CEO of Gogebic Range Bank commented, “After carefully considering what is best for our employees, customers, shareholders, and the communities we serve, we believe our decision to partner with Zeal is the best path forward for our organization. We are excited to bring together two organizations focused on exceptional customer service and high value products, as well as a philosophy of strong community support.”
Luse Gorman, PC is serving as legal counsel and Doeren Mayhew Advisors, LLC is serving as financial advisor to Zeal Credit Union. Varnum LLP is serving as legal counsel and Bancorp I, Inc. is serving as
1742/4915-9448-6794-v2}
financial advisor to West End Financial Corp. and Gogebic Range Bank. Donnelly Penman & Partners, Inc. provided a fairness opinion to West End Financial Corp. and Gogebic Range Bank.
About Gogebic Range Bank
Gogebic Range Bank, a full-service community bank, has approximately $147.2 million in total assets, and four branch offices serving the Western End of the Upper Peninsula of Michigan and Northeastern Wisconsin that are in Ironwood, Bessemer, Bergland and Ewen, Michigan. Gogebic Range Bank is the wholly-owned subsidiary of West End Financial Corp. More information about Gogebic Range Bank can be found at www.gogebicrangebank.com.
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements are not historical or current facts and they often include words like “believe,” “expect,” “anticipate,” “estimate,” “intend” or similar terminology. Certain factors that could cause actual results to differ materially from those expected, which include delays in completing the transaction, the liquidation, and the dissolution; legislative and regulatory changes that adversely affect the business in which Zeal Credit Union and Gogebic Range Bank are engaged; and other factors. Except as required by law, neither Zeal Credit Union nor Gogebic Range Bank nor West End Financial Corp. undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.