Two Ohio-based banks, First Citizens Banc Corp. (FCZA) and TCNB Financial Corp have entered into a definitive merger agreement. Per the agreement, Sandusky, OH-based First Citizens Banc has agreed to acquire Dayton, OH-based TCNB Financial Corp., and its wholly owned subsidiary, The Citizens National Bank of Southwestern Ohio, in an all-cash deal worth $17.2 million.
Per the terms of the transaction, First Citizens Banc will pay around $23.50 in cash for each outstanding share of TCNB Financial common stock. As of Jun 30, 2014, TCNB had total assets, loans and deposits of $105 million, $75 million and $93 million respectively.
The deal, subject to customary regulatory and shareholders’ approvals, is expected to close by first-quarter 2015. First Citizens Banc expects the deal to be accretive to its 2015 earnings.
A Win-Win Deal
The acquisition is in line with First Citizens Banc’s strategy of mobilizing deposits in rural areas and lending excess funds in the urban areas. Presently, Citizens National has three branches in Dayton, which is now the fourth largest Metropolitan Statistical Area in the state of Ohio. The wide-ranging product offerings of First Citizens Banc will well complement with the reputation of Citizens National in Dayton area and this will help it extract the best out of that market.
For TCNB Financial’s customers, this merger will be beneficial, as they will get access to a wider array of products, including investment management, trust and commercial banking services.
First Citizens Banc currently carries a Zacks Rank #4 (Sell). Some better-ranked Midwest banks include PrivateBancorp, Inc. (PVTB), First Business Financial Services, Inc. (FBIZ) and First Financial Corp. (THFF). While PrivateBancorp sports a Zacks Rank #1 (Strong Buy), both First Business Financial Services and First Financial hold a Zacks Rank #2 (Buy).
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