Farmers & Merchants State Bancorp, the holding company for the Farmers & Merchants State Bank, announced Monday Aug. 20 in a press release it will acquire Limberlost Bancshares, Inc.
Limberlost Bancshares, Geneva, Ind., is the holding company for Bank of Geneva.
Bank of Geneva has six full-service offices in the Indiana counties of Geneva, Berne, Monroe, Monroeville, Portland and Decatur, Ind.
F&M currently has 21 Ohio offices, with four in Indiana.
Bank of Geneva had about $287 million in assets, $257 million in loans, $212 million in deposits, and $30.6 million in consolidated equity as of June 30.
The press release states Limberlost has 1,000 shares of stock outstanding.
The terms of the merger agreement state Limberlost shareholders will receive 1,830 shares of F&M common stock, plus $8,465 in cash per Limberlost share. A person with 10 shares of Limberlost stock will receive 18,300 shares of F&M stock, plus $84,650 in cash.
The release said, based on the closing price of F&M stock ($44.71) as of Friday, Aug. 17, the total transac- tion is valued at more than $88.7 million.
When complete, F&M will maintain consolidated assets of about $1.5 billion. The transaction is anticipated to be complete by the end of 2018, or the first quarter of 2019.
Once the merger is complete, Andrew Briggs, Limberlost chairman, will become a member of the F&M Board of Directors. Phil Lucas, Bank of Geneva executive vice president, will be named a senior vice president at F&M.
Paul Siebenmorgen, president and chief executive officer of F&M, stated the bank “is pleased to combine our two strong institutions, which have a shared vision and shared values.
“This is an excellent opportunity for the Bank of Geneva to become part of a larger community banking organization that will allow us to offer customers in the communities served a wider range of financial services, while still preserving the convenience of local decision makers through our office network.”
When the acquisition is complete, the Bank of Geneva branches will be rebranded as F&M offices.
The Farmers & Merchants State Bank was established in 1897. The Bank of Geneva is slightly older, having been established in 1892.