Civista Bancshares in Sandusky, Ohio, has agreed to buy Farmers Savings Bank in Spencer, Ohio.
The $4.1 billion-asset Civista said in a press release that it will pay $56 million in cash and stock for the $285 million-asset Farmers. The deal is expected to close in the fourth quarter.
Civista will also raise $70 million by selling common stock in a public offering. Piper Sandler is serving as the book-running manager.
Farmers has two branches, $183 million in low-cost core deposits, and $104 million of loans.
The acquisition “not only strengthens our presence in northeast Ohio but also reflects our shared commitment to community banking,” Dennis Shaffer, Civista’s president and CEO, said in the release.
The deal is expected to be 10% accretive to Civista’s earnings per share, including cost savings. It should take three years to earn back any dilution to Civista’s tangible book value.
Piper Sandler and Vorys, Sater, Seymour and Pease advised Civista. Janney Montgomery Scott and Dinsmore & Shohl advised Farmers.