Farmers & Merchants Bancorp to acquire Peoples-Sidney Financial
Jun. 14, 2022 6:08 PM ETFarmers & Merchants Bancorp, Inc. (FMAO)FMAOBy: Jessica Kuruthukulangara, SA News Editor1 Comment
- Farmers & Merchants Bancorp (NASDAQ:FMAO) said Tuesday it will acquire Peoples-Sidney Financial (OTCPK:PPSF) in a stock and cash deal.
- PPSF shareholders will elect to receive either 0.6597 FMAO shares or $24/share in cash for each PPSF share owned, subject to at least 65% of all PPSF shares being exchanged for FMAO stock.
- Based on FMAO's closing price on Tuesday, the implied acquisition value is $27M.
- Excluding one-time costs, FMAO expects the deal to be ~2.5-3.9% accretive to estimated 2023 and 2024 EPS.
- Tangible book value per share will be diluted ~(2.1%) at closing and is expected to be recovered in 3.25 years using the crossover method.
- The deal expands FMAO's community banking franchise into Sidney, Ohio and surrounding markets in Shelby County.
- At Mar. 31, PPSF reported $132.7M in total assets, $99.9M in loans, $114.8M in deposits and $15.4M in tangible equity.