SB Financial, the parent company of State Bank and Trust, has agreed to acquire Edon Bancorp, in a deal worth $15.5m. Based in Edon, Ohio, Edon Bancorp is the parent company of The Edon State Bank Company of Edon, Ohio.
Under the terms of the merger agreement, SB Financial will pay $103.50 in cash in exchange for each share of Edon Bancorp, representing nearly 135% of Edon Bancorp’s tangible book value per share as of 31 December 2019.
The deal has been collectively approved by the boards of directors of both bank holding companies and their subsidiary banks. Once completed, the deal will enable State Bank to gain a presence in Edon, Ohio, strengthening its position in the Northwest Ohio region.
The combined entity is anticipated to hold $1.1bn in assets.
State Bank CEO comments on Edon Bancorp acquisition
State Bank president and CEO Mark Klein said: “We’re excited to welcome Edon State Bank to the State Bank family.
“Both banks are deeply committed to their employees, their customers, and the communities they serve. We also share similar values of developing authentic relationships with customers, and being their trusted financial advisor.”
The merger is expected to be completed in the second quarter of this year, subject to Edon Bancorp shareholders’ approval and regulatory approvals.
Edon State Bank president and CEO: “This transaction is beneficial to the shareholders, customers, and communities served by Edon State Bank.
“We are proud of what we have built here at Edon State Bank and are confident that our customers will continue to receive the community banking experience they have come to know in banking with us, while enjoying access to additional products and services that a larger community bank like State Bank can offer.
“Both organisations are pillars in their local markets, making this a good opportunity for our employees as well. We have confidence everyone involved will continue to be in good hands.”
For the transaction, Janney Montgomery Scott acted as a financial advisor to SB Financial while Hogan Lovells US served as its legal counsel.
On the other hand, Donnelly Penman & Partners acted as financial advisor and Howard served as legal counsel to Edon Bancorp.