WONDER LAKE, Ill. and HARVARD, Ill., April 15, 2016 /PRNewswire/ -- The State Bank Group and Harvard Illinois Bancorp, Inc. announced today that all regulatory approvals required to complete the pending sale of Harvard Savings Bank, the wholly owned subsidiary of Harvard Illinois Bancorp, Inc., have been received. Pursuant to the purchase and assumption agreement dated May 20, 2015, State Bank, a wholly owned subsidiary of The State Bank Group's holding company, Wonder Bancorp, Inc., will acquire substantially all of the assets, and assume substantially all of the liabilities, of Harvard Savings Bank, including all of Harvard Savings Bank's deposit liabilities. The assets that are excluded from the transaction consist primarily of rights related to Harvard Savings Bank's $18.1 million investment in loan repurchase agreements managed by Pennant Management, Inc. and related litigation and certain tax assets and pre-paid expenses, the net book value of which totaled approximately $8.2 million at December 31, 2015.
The transaction is expected to close August 1, 2016, subject to the satisfaction of customary closing conditions. Subsequent to the transaction, Harvard Savings Bank is expected to merge with and into Harvard Illinois Bancorp, Inc., and Harvard Illinois Bancorp, Inc. will cease to be a savings and loan holding company.
About The State Bank Group
Wonder Bancorp, Inc. is the holding company of State Bank. State Bank was founded in 1979 as an Illinois State chartered bank and is a full-service commercial bank, with robust business and consumer financial products and services. The State Bank Group's principal office is located at 7526 Hancock Drive, Wonder Lake, Illinois 60097. Additional branch locations are located in Johnsburg, Spring Grove, Lakemoor, Hebron and a second location in Wonder Lake.
About Harvard Illinois Bancorp, Inc.
Harvard Illinois Bancorp, Inc. is the holding company of Harvard Savings Bank. Founded in 1934, Harvard Savings Bank is an Illinois-chartered savings bank that conducts business from its offices in Harvard, Illinois and Morris, Illinois. As a community-oriented savings and loan association, Harvard Savings Bank offers a variety of deposit and loan products to individuals and small businesses, primarily those located in McHenry and Grundy Counties, and, to a lesser extent, Boone County, Illinois and Walworth County, Wisconsin. Investors may obtain additional information about Harvard Illinois Bancorp, Inc. and Harvard Savings Bank on the internet at www.harvardsavingsbank.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include: management plans relating to the transaction; the expected timing of the completion of the transaction; the ability to complete the transaction; any statements of the plans and objectives of management for future or past operations, products or services, including the execution of integration plans; any statements of expectation or belief; the expectations of regarding the resolution of the Pennant Management, Inc. assets; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Harvard Illinois Bancorp, Inc. and The State Bank Group do not assume any duty or undertake to update forward-looking statements. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in these forward-looking statements and future results could differ materially from historical performance. Factors that could cause or contribute to such differences include, but are not limited to, the possibility: that expected benefits may not materialize in the timeframe expected or at all, or may be more costly to achieve; that the transaction may not be timely completed, if at all; that prior to the completion of the transaction or thereafter, the parties' respective businesses may not perform as expected due to transaction-related uncertainty, disruption in business during the pendency of the transaction or other factors; that the parties are unable to successfully implement integration strategies or closing conditions are not satisfied in a timely manner or at all; reputational risks and the reaction of customers to the transaction; diversion of management time on merger-related issues; and the inability of Pennant Management, Inc. and Harvard Illinois Bancorp, Inc. to realize the full, or any, value from the resolution of the proceedings related to the Pennant Management, Inc. assets.
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SOURCE Harvard Illinois Bancorp, Inc.