Civista Bancshares has signed an agreement to acquire United Community Bank in a cash and stock deal valued at about $114.4m.
For each share of United Community Bank, its shareholders are entitled to receive .027 shares of Civista common stock and $2.54 in cash.
The merged entity will have total assets of $2.1bn, total loans of $1.5bn and total deposits of $1.7bn based on financial data as of 31 December 2017.
Commenting on the deal, Civista Bancshares CEO and president Dennis Shaffer said: “This is an extraordinary opportunity for Civista and we are very excited to welcome United’s customers and employees to the Civista family.
“Michael McLaughlin, UCB’s chief operating officer, will be named market executive and Mark Sams, UCB’s chief credit officer, will continue to lead the commercial lending efforts in the market.
“Civista plans to keep all eight UCB branch offices open. We believe the long-term growth potential of this partnership offers substantial upside for shareholders of both organisations.”
United manages a network of eight branch in south-eastern Indiana, five of which are located in the Cincinnati MSA.
As a result of merger, Civista’s community banking platform will operate in each of the five largest Ohio marketplaces.
Under the terms of the agreement, a total of three existing United directors will join the Civista Bank board of directors and two of those directors will join the Civista Bancshares board of directors.
The purchase of United is expected to be immediately accretive to Civista’s earnings in 2018 and afterwards.
The transaction, which has been unanimously approved by the boards of directors of both companies, is expected to close during the third quarter of 2018, pending receipt of all required regulatory approvals and satisfaction of other customary closing conditions.