United Bankers’ Bank and MK Decision Partnership Brings Business Credit Card Origination Online for 75+ Banks in 15-State Footprint
MK Decision’s loan origination system (LOS) allows United Bankers’ Bank to process business credit card applications digitally during COVID-19 Quarantines
SAN DIEGO — United Bankers’ Bank (UBB), a $996 million-asset correspondent community bank, was in search of a FinTech partner to fulfill their vision of providing white label business credit card shopping experiences to their 75+ agent banks across 15-states. UBB was focused on deploying 75+ bank-branded credit card websites with online business credit card applications. On the back-end, UBB required a centralized loan processing software for faster, better credit decisions.
As an ICBA Bancard client, UBB had heard from fellow community bankers and Bancard about MK Decision (MK). The Independent Community Bankers of America (ICBA) had vetted and since promoted MK’s Credit Card Origination System (CCOS) through their first ICBA ThinkTECH Accelerator powered by The Venture Center.
“MK’s system gives community banks an enormous opportunity to grow their digital customer acquisition and streamline manual banking processes,” said ICBA Bancard President and CEO Tina Giorgio. “After speaking with United Bankers’ Bank about their digital transformation goals, I thought MK’s platform presented synergies that would make them a good fit and was pleased to make introductions,” – Giorgio said.
Speaking further to the connection between UBB and MK, UBB’s Chief Marketing Officer John Peterson recognizes why they chose to partner with MK.
“After meeting MK Decision, I felt confident in their mission and integrity. MK’s business values aligned closely with UBB’s. MK puts its customers first. This was made clear in our negotiation process when they fulfilled all of our requests with ease.”
In March 2020, as the United States economy shut down, UBB faced the COVID-19 quarantine head-on. With the help of MK’s digital lending software, UBB transitioned smoothly to remote work. MK’s Dashboard, a cloud-based loan origination system, empowered bankers to access credit profiles, leave notes for fellow underwriters, and offer timely credit decisions from their homes. Business as usual, in unusual times.
In response to the sudden transition to remote work, UBB’s Jill Robiller, assistant vice president of bank cards said, “Even with 70 percent of our staff working remotely, we did not compromise on our efficiency and timeliness. With the help of MK’s Dashboard, we were able to continue underwriting and approving applications from the safety of our homes.”
As part of UBB’s project, MK’s loan origination Dashboard will allow bankers to process credit card applications seamlessly by automatically pulling credit reports and generating financial ratios with MK’s CreditConnect, and sending approved files directly to UBB’s core processor FIS with MK’s CoreConnect.
Amidst branch-closures and social distancing, MK’s end-to-end loan operating system allowed UBB’s credit card team to collaborate digitally and continue transacting. UBB exceeded customer expectations by offering punctual credit decisions to those in need. After successfully adapting to COVID-19 and embracing the “new normal”, UBB recognizes this was a crucial first step towards their digital transformation. By implementing MK’s CCOS, UBB is not only able to compete, but thrive.
Edon Bancorp, Inc. Announces Completion of its Merger with SB Financial Group, Inc.
DEFIANCE, Ohio — SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial”), parent company of State Bank and Trust Company (“State Bank”), announced the successful closing of the previously announced merger with Edon Bancorp, Inc. (Private) (“Edon Bancorp”), parent company of The Edon State Bank Company of Edon, Ohio (“Edon State Bank”). The merger agreement was unanimously approved by the Boards of Directors of both bank holding companies and their subsidiary banks in accordance with the terms of the previously announced agreement.
“We would like to extend a warm welcome to all the stakeholders of Edon State Bank; this includes the staff, clients, community and prior stockholders of Edon State Bank. Each of our banks has been deeply committed to these stakeholders and this merger will only serve to strengthen those ties and commitments,” said Mark A. Klein, State Bank Chairman, President and CEO. “We are encouraged with the closing of this transaction and look forward to further promoting the unison of two strong community bank brands now under one umbrella as State Bank. With the joint operation of our companies, we enable our customers across all of our markets access to a wide range of financial products and services, including the personalized attention they expect from their community bank.”
Under the terms of the merger agreement, shareholders of Edon Bancorp received $103.50 in cash in exchange for each share of Edon Bancorp common stock for a transaction valued in aggregate at approximately $15.5 million. The consideration represented approximately 135% of Edon Bancorp’s tangible book value per share as of December 31, 2019.
With this merger, SB Financial expands its presence throughout the growing and vibrant Northwest Ohio region and offers new opportunities in Edon, Ohio. The combined company has approximately $1.1 billion in assets as a result of the merger.
Janney Montgomeryscott LLC served as financial advisor to SB Financial, and Hogan Lovells US LLP served as its legal counsel. Donnelly Penman served as financial advisor to Edon Bancorp and provided a fairness opinion to its Board of Directors. Howard & Howard served as Edon Bancorp’s legal counsel.
Waterford Bancorp, Inc. Announces Agreement to Acquire Clarkston Financial Corporation
TOLEDO, Ohio — Waterford Bancorp, Inc., Toledo, Ohio (“Waterford”), the bank holding company for Waterford Bank, and Clarkston Financial Corporation, Clarkston, Michigan (“Clarkston”), the bank holding company for Clarkston State Bank, jointly announced the signing of a definitive agreement and plan of reorganization and merger. Under the terms of the agreement, Clarkston will merge with and into Waterford and Clarkston State Bank will merge with and into Waterford Bank.
The agreement provides upon closing of the transaction, 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. The per share cash consideration is subject to possible upward adjustment based on the appraised value of Waterford common stock as of June 30, 2019.
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.
The boards of directors of Waterford and Clarkston unanimously approved the agreement. Two of Clarkston’s directors will join the Waterford board of directors. The merger is subject to regulatory and shareholder approval, among other customary conditions to closing.
Community Bank System, Inc. Completes Merger with Steuben Trust Corporation and Enhances Western New York Presence
SYRACUSE, N.Y. — Community Bank System, Inc. (“Community Bank System”) (NYSE: CBU), the parent company of Community Bank, N.A., announced that it has completed its merger with Steuben Trust Corporation (“Steuben”) (OTCQB: SBHO) and its banking subsidiary, Steuben Trust Company (“Steuben Trust”), on June 12, 2020. Community Bank System acquired Steuben for a combination of stock and cash representing total consideration valued at approximately $98.3 million. The acquisition extends Community Bank System’s footprint into two new counties in Western New York State, and enhances its presence in four Western New York State counties in which it currently operates. Upon completion of the transaction, Community Bank System will have over $13.0 billion in assets and over $10.0 billion in deposits.
Mark E. Tryniski, President and Chief Executive Officer of Community Bank System commented, “We are pleased to welcome the shareholders, customers and employees of Steuben Trust to Community Bank. Over the past 118 years, Steuben Trust has developed a culture dedicated to exceptional customer service and meeting the banking needs of its communities. Community Bank shares these same values and looks forward to the opportunity to continue to serve Steuben’s customers. The commitment of our collective employees was demonstrated time and again by their efforts to work through the challenges caused by the COVID-19 pandemic to ensure that the customers’ transition to Community Bank is as seamless as possible. I want to commend both teams for their innovation and hard work and we are excited about this opportunity to expand the reach and depth of our banking services in Western New York. We hope that our new customers will enjoy the larger branch network and broad variety of financial services Community Bank and its subsidiaries have to offer. Community Bank is committed to our new employees and customers and the communities in which they live and work, and we look forward to this opportunity to welcome them to the Community Bank family.”
Under the terms of the Agreement and Plan of Merger (“Merger Agreement”), Steuben’s common stockholders are entitled to receive a combination of $12.60 in cash and 0.8054 shares of Community Bank System common stock, and cash in lieu of fractional shares, if any, for each share of Steuben common stock. The Exchange Agent, American Stock Transfer & Trust Company, LLC (“AST”),will contact each stockholder in order to complete the exchange of the Steuben stock for the merger consideration in accordance with the terms of the Merger Agreement.
With the inclusion of Steuben Trust, Community Bank System, Inc. will operate over 240 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts through its banking subsidiary, Community Bank, N.A.