Edon Bancorp, Inc. Announces Completion of its Merger with SB Financial Group, Inc.
THE TRANSACTION
On June 5, 2020, SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial”), parent company of State Bank and Trust Company (“State Bank”), and Edon Bancorp, Inc. (Private) (“Edon Bancorp”), parent company of The Edon State Bank Company of Edon, Ohio (“Edon State Bank”), jointly announced the completion of its previously announced merger. Under the terms of the definitive agreement, Edon Bancorp will be combined with SB Financial and Edon State Bank will merge with and into State Bank.
Shareholders of Edon Bancorp received $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 merger has provided State Bank a presence in Edon, Ohio, 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.
The total consideration to Edon Bancorp equates to approximately 1.35x book value and tangible book value, 1.77x adjusted book value and adjusted tangible book value (adjusted to 8.5% tangible common equity to tangible assets), 30.00x latest twelve months pre-tax earnings, and an approximate 8% premium to core deposits as of December 31, 2019.
The combined entity has approximately $1.1 billion in assets. SB Financial is 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.
Our Client
EDON BANCORP, INC.
The Edon Banking Company was established in January 1893 as a co-partnership consisting of Oscar Eaton, Will W. Morrison, Theodore S. Carvin and I.E. Gardner. Oscar Eaton was president; I.E. Gardner, vice president; and Theodore S. Carvin, cashier. The Bank was incorporated in 1911 as The Edon State Bank Company of Edon, Ohio.
Transaction Partner
SB FINANCIAL GROUP, INC.
Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 20 offices; 19 in nine Ohio counties and one in Fort Wayne, Indiana, and 25 full-service ATMs. State Bank has seven loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and opinions throughout the Tri-State region. SB Financial’s common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”.
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