Sturgis Bancorp Concludes Stock Repurchase Plan

Eric L. Eishen, President and CEO, stated, "Sturgis Bancorp's board of directors and management are committed to preserving the well-capitalized regulatory classification of Sturgis Bank & Trust Company, its primary subsidiary. With the current conditions in the financial markets, the options for capital formation are more limited than in the past. The national and Michigan economic climate condition also creates an environment where the Bank should be focused on capital preservation."

"The Bank is comfortably above the 'well capitalized' regulatory capital level, but further stock repurchases could require Sturgis Bancorp to obtain higher-cost funding, which might reduce or eliminate the accretive nature of the repurchases. In addition, further dividends from the bank to Sturgis Bancorp to fund further repurchases could limit the ability for the Bank to make prudent strategic decisions."

Sturgis Bancorp is the holding company for Sturgis Bank & Trust Company, and its subsidiaries Oakleaf Financial Services, Inc. and Oak Mortgage, LLC. Sturgis Bancorp provides a full array of trust, commercial and consumer banking services from 11 banking centers in Sturgis, Bronson, Centreville, Climax, Coldwater, Colon, South Haven, Three Rivers and White Pigeon, Mich. Oakleaf Financial Services offers a complete range of investment and financial-advisory services. Oak Mortgage offers residential mortgages in all markets of the Bank.

This release contains statements that constitute forward-looking statements. These statements regarding commitment of the board of directors and management and circumstances which "could" or "should" occur and statements and implications regarding the future financial performance of the company are forward-looking statements. Such forward-looking statements are not guarantees of future events or performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statement. The ability of the company and its subsidiaries to preserve well capitalized regulatory status, raise additional capital and identify and implement favorable strategic opportunities depend on future events and circumstances and are not assured. Factors that could cause a difference between an ultimate actual outcome and a preceding forward-looking statement include, but are not limited to, changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking laws and regulations; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; government and regulatory policy changes; the outcome of any pending and future litigation and contingencies; trends in consumer behavior and ability to repay loans; and changes of the world, national and local economies. Bancorp undertakes no obligation to update, amend or clarify forward-looking statements as a result of new information, future events, or otherwise. The numbers presented herein are unaudited.

For additional information, visit our website at www.sturgisbank.com .

SOURCE Sturgis Bancorp, Inc.

Copyright © 2009, PRNewswire
Copyright © 2009, NewsBlaze, Daily News

Tags: ,FIN,MI-Sturgis-Stock-Plan