SB Financial, the parent of State Bank and Trust, has agreed to acquire Edon Bancorp, the closely held parent of Edon State Bank, in a cash deal valued at approximately $15.5m.
The Boards of Directors of both bank holding companies and their subsidiary banks have approved the deal.
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Following the agreement, Edon Bancorp will merge into SB Financial, while Edon State Bank will merge into State Bank.
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.”
As per the terms of the agreement, shareholders will get $103.50 in cash for each share of Edon Bancorp common stock they hold.
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By GlobalDataThis represents about 135% of Edon Bancorp’s tangible book value per share as of 31 December 2019.
Following the completion of the merger, the new entity is expected to have $1.1bn in assets.
Through this agreement, SB Financial intends to grow the State Bank’s presence in the Northwest Ohio region.
Edon State Bank president and CEO Lee Dick said: “This transaction is beneficial to the shareholders, customers, and communities served by Edon State Bank.
“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 organizations 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.”
Subject to receipt of regulatory and shareholder approvals, the deal is expected to be completed by the second quarter of this year.
