Civista Bancshares Acquires Farmers Savings Bank with Offering
Civista Bancshares, Inc. Announces New Acquisition Deal
Civista Bancshares, Inc. ('Civista') has made a significant move in the banking sector by agreeing to acquire The Farmers Savings Bank ('Farmers'). This merger represents a strategic effort to enhance Civista's asset base, allowing it to better serve its client base and increase overall market presence.
Details of the Merger Agreement
Under the terms of the definitive merger agreement, Civista will acquire Farmers for a total consideration of approximately $70.4 million, which consists of cash and the issuance of common shares. As of the most recent financial data, the combined entity is projected to have total assets of about $4.4 billion, with net loans around $3.2 billion and total deposits nearing $3.5 billion.
Financial Benefits Expected from the Acquisition
This merger aims to not only increase assets but also enhance Civista's commercial lending capacity in the regions served by Farmers. With Farmers operating branches in strategic locations, Civista expects to leverage these to deploy liquidity effectively, enhancing growth opportunities moving forward.
Public Offering of Common Shares
In conjunction with the merger announcement, Civista has also launched an underwritten public offering of its common shares. Expected proceeds from this offering will be utilized for general corporate purposes, including potential organic growth initiatives and further strategic transactions. The underwriting process features a 30-day option for underwriters to purchase additional shares, underscoring a commitment to robust capital management.
Preparation and Regulatory Approval
The merger has received unanimous approval from the Boards of Directors of both Civista and Farmers, with directors and major shareholders indicating their intention to support the merger. The transaction is subject to Farmers shareholders' approval and various regulatory clearances, expected to finalize in late 2025.
Statements from Leadership
“We are thrilled to welcome Farmers Savings Bank to the Civista family,” stated Dennis G. Shaffer, President & CEO of Civista. He emphasized that this acquisition is not only about expanding territories but also about delivering exceptional value to shareholders and enhancing community banking service.
Tom Lee, CEO of Farmers, echoed this sentiment, highlighting the mutual commitment both banks share in prioritizing client relationships and community values. He believes that the combined resources will provide an array of enhanced services to existing customers.
Future Prospects for Civista Bancshares
Civista is well-positioned to maximize the benefits from this merger. The banks performed extensive due diligence to assure a smooth transition, which promises to be accretive to earnings and enhance shareholder value. As Civista integrates Farmers into its operations, it anticipates continued compliance with regulatory capital requirements while fostering growth.
Frequently Asked Questions
What is the strategic purpose of the Civista acquisition?
The acquisition aims to enhance Civista's asset base and expand its commercial lending capacity while delivering more value to shareholders and community members.
How will proceeds from the public offering be used?
Proceeds from the public offering will support general corporate purposes, including organic growth opportunities and strategic transactions.
What benefits do Civista and Farmers anticipate from the merger?
The merger is expected to add significant liquidity, expand market presence, and enhance customer service offerings through combined expertise and resources.
When is the expected close date for the merger?
The merger is anticipated to close in the fourth quarter of 2025, subject to regulatory approvals and shareholder votes.
Who are the key financial advisors for this transaction?
Piper Sandler & Co. is acting as the financial advisor to Civista, while Janney Montgomery Scott LLC advises Farmers on the merger deal.
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