(PRNewswire) — SB Financial Group Inc., parent company of State Bank and Trust Company, and Edon Bancorp Inc., parent company of The Edon State Bank Company of Edon, on Friday jointly announced entry into a definitive agreement pursuant to which Edon Bancorp will be combined with SB Financial and Edon State Bank will merge with and into State Bank. The merger agreement was unanimously approved by the boards of directors of both bank holding companies and their subsidiary banks.
Under the terms of the transaction, shareholders of Edon Bancorp will receive $103.50 in cash in exchange for each share of Edon Bancorp common stock for a transaction valued in aggregate at approximately $15.5 million. The consideration represents approximately 135% of Edon Bancorp’s tangible book value per share as of Dec. 31, 2019.
When finalized, the merger will give State Bank a presence in Edon, strengthening the State Bank’s position in the northwest Ohio region. The merger with Edon Bancorp is in keeping with SB Financial’s strategic goal of investing where it can best serve its customers, and these new communities are part of that.
“We’re excited to welcome Edon State Bank to the State Bank family,” said State Bank President and CEO Mark Klein. “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.”
Lee Dick, Edon State Bank president and CEO added, “This transaction is beneficial to the shareholders, customers, and communities served by Edon State Bank. We are proud of what we have built here at Edon State Bank and are confident that 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.”
Pending regulatory and Edon Bancorp shareholder approvals, SB Financial intends to complete the transaction in the second quarter of 2020. After completion of the merger, the combined entity is expected to have $1.1 billion in assets. For nearly 120 years State Bank has been committed to the success of the communities in which it operates. That commitment will extend to the existing Edon State Bank offices and surrounding communities that Edon State Bank has served since 1893.