Lebanon, Ohio-based LCNB Corp. (LCNB) has inked a stock plus cash deal to acquire BNB Bancorp, Inc (‘BNBK’). The deal is expected to close in second-quarter 2015.
Operating one full-service branch in Brookville, Brookville National Bank – the core banking subsidiary of BNBK – has assets and deposits of around $109 million and $98 million, respectively.
As per the merger deal, for every BNBK share, shareholders of BNBK will get 2.005 shares of LCNB common stock plus cash amount of $15.75 per share for a total value of $45.00 per share, resulting in an aggregate amount of around $12.6 million.
The deal seems to be a strategic one for LCNB. Following the closure of the deal, LCNB will have around $1.2 billion in assets, $1.1 billion in deposits and 37 branch offices spread in southwestern and south central Ohio.
Further, it is anticipated that LCNB will realize 35% cost savings on non-interest expenses of BNBK. Excluding one-time acquisition costs, the deal is expected to be around 1% accretive to LCNB’s earnings in 2015 and 3% accretive in 2016 and beyond. Also upon closing, the deal will be accretive to LCNB’s tangible book value per share.
Chairman and CEO of LCNB, Stephen P. Wilson said, “We are excited about the opportunity to partner with BNB in building a stronger franchise in the Dayton MSA. This acquisition continues our strategy of being an acquirer of choice of attractive banks in and around our core markets.”
President of BNBK and CEO of Brookville National, Roger Mole, stated that the deal is set to benefit the shareholders of both the companies.
Currently LCNB carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the finance space include Cowen Group, Inc. (COWN), FXCM Inc. (FXCM) and Bank of the Ozarks, Inc. (OZRK). All three stocks sport a Zacks Rank #1 (Strong Buy).
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