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Investing.com -- Civista Bancshares Inc (NASDAQ:CIVB) stock fell 9% following the announcement of its plans to acquire The Farmers Savings Bank and launch a public offering of common shares.
The Ohio-based bank holding company revealed it has signed a definitive merger agreement to acquire Farmers in a cash and stock transaction valued at approximately $70.4 million. The deal will add two branches in Northeast Ohio along with approximately $183 million in low-cost core deposits and $104 million in net loans.
Civista also announced the launch of an underwritten public offering of its common shares, with Piper Sandler & Co. serving as the sole book-running manager. The company plans to use the proceeds for general corporate purposes, including supporting organic growth and potential future strategic transactions.
The acquisition is expected to strengthen Civista’s presence in northeast Ohio and allow the bank to deploy Farmers’ excess liquidity, as indicated by Farmers’ 46% loan-to-deposit ratio. Based on March 31, 2025 financial data, the combined entity would have approximately $4.4 billion in total assets, $3.2 billion in net loans, and $3.5 billion in total deposits.
"We are excited to welcome Farmers Savings Bank into the Civista family. This acquisition not only strengthens our presence in northeast Ohio but also reflects our shared commitment to community banking," said Dennis G. Shaffer, President & CEO of Civista.
The transaction, unanimously approved by both companies’ boards of directors, is expected to close in the fourth quarter of 2025, subject to regulatory approvals and other customary closing conditions. According to Civista, the acquisition is projected to be approximately 10% accretive to its diluted earnings per share once anticipated cost savings are fully implemented.
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