Civista Bancshares to Acquire The Farmers Savings Bank and Offers Public Shares
Civista Bancshares, Inc., a financial services holding company based in Sandusky, Ohio, has recently made a significant announcement regarding its expansion strategy. The company revealed that it has signed a definitive merger agreement to acquire The Farmers Savings Bank, which is headquartered in Spencer, Ohio. This acquisition is set to bolster Civista's presence and capabilities within the Northeast Ohio banking market.
As of March 31, 2025, the merger will create a combined entity boasting around $4.4 billion in total assets and about $3.2 billion in net loans, with total deposits reaching approximately $3.5 billion. Civista is also launching an underwritten public offering of its common shares, signaling its intent to utilize the proceeds for corporate purposes, including potential future acquisitions and organic growth. Piper Sandler & Co. will act as the leading managing firm for this offering, providing crucial financial advisory services during this key phase.
This merger represents a strategic leap for Civista, as it stands to gain two additional branches from The Farmers Savings Bank located in Medina and Lorain Counties. The Farmers Savings Bank reported a total asset valuation of $285 million and maintained a healthy loan-to-deposit ratio of 46% as of the cut-off date. Civista's management expresses optimism that leveraging Farmers' infrastructure and customer base, coupled with access to its liquidity, will position both institutions for robust, sustainable growth.
Dennis G. Shaffer, President and CEO of Civista, commented on the acquisition, expressing excitement about integrating Farmers Savings Bank into the Civista family. According to him, this partnership not only increases market reach in Northeast Ohio but also demonstrates Civista’s dedication to community-oriented banking practices. By melding their resources and deep-seated expertise, both companies hope to generate superior value for their shareholders while providing exceptional service to local communities and businesses.
Tom Lee, the CEO of Farmers Savings Bank, also shared his enthusiasm about the merger, stating that this partnership heralds a new and promising chapter for Farmers Savings Bank and the communities it serves. He emphasized Civista’s alignment with Farmers Savings Bank’s values regarding personalized customer service and community investment, with confidence that the merger will lead to expanded offerings and improved customer resources while respecting the longstanding relationships cultivated over the years.
The preliminary deal structure indicates that Civista will disburse $34.925 million in cash and issue approximately 1.43 million common shares in acquiring Farmers. This places the total estimated merger value at around $70.4 million, based on Civista's common shares' closing price on July 9, 2025. The merger has received unanimous support from both companies' boards of directors and is expected to finalize in the fourth quarter of 2025, pending approval from Farmers Savings Bank shareholders and all necessary regulatory bodies.
As preparation for the merger progresses, thorough due diligence has been conducted to ensure a smooth transition. The acquisition is projected to boost Civista's diluted earnings per share by approximately 10% as cost savings materialize post-merger. Additionally, any potential decline in tangible book value resulting from the merger is anticipated to recover within approximately three years after the closing date, maintaining sufficient capital ratios above the regulatory requirements.
In conjunction with these developments, Civista plans to hold an investor conference call and live webcast on July 11, 2025, offering stakeholders a chance to gain deeper insights into the merger. Attendees can participate via a phone call or access the event through Civista's webpage. Financial and legal advisers like Piper Sandler & Co. and Vorys, Sater, Seymour and Pease LLP, respectively, are heavily involved in the process, ensuring that all regulatory compliance and strategic objectives are met efficiently.
Through this merger, Civista is reinforcing its market positioning while simultaneously enhancing service delivery within the communities of Spencer, Wellington, and beyond. The collaboration aims to capitalize on shared values of community engagement and financial service excellence, marking a significant moment for both organizations as they advance towards a promising future together.
As of March 31, 2025, the merger will create a combined entity boasting around $4.4 billion in total assets and about $3.2 billion in net loans, with total deposits reaching approximately $3.5 billion. Civista is also launching an underwritten public offering of its common shares, signaling its intent to utilize the proceeds for corporate purposes, including potential future acquisitions and organic growth. Piper Sandler & Co. will act as the leading managing firm for this offering, providing crucial financial advisory services during this key phase.
This merger represents a strategic leap for Civista, as it stands to gain two additional branches from The Farmers Savings Bank located in Medina and Lorain Counties. The Farmers Savings Bank reported a total asset valuation of $285 million and maintained a healthy loan-to-deposit ratio of 46% as of the cut-off date. Civista's management expresses optimism that leveraging Farmers' infrastructure and customer base, coupled with access to its liquidity, will position both institutions for robust, sustainable growth.
Dennis G. Shaffer, President and CEO of Civista, commented on the acquisition, expressing excitement about integrating Farmers Savings Bank into the Civista family. According to him, this partnership not only increases market reach in Northeast Ohio but also demonstrates Civista’s dedication to community-oriented banking practices. By melding their resources and deep-seated expertise, both companies hope to generate superior value for their shareholders while providing exceptional service to local communities and businesses.
Tom Lee, the CEO of Farmers Savings Bank, also shared his enthusiasm about the merger, stating that this partnership heralds a new and promising chapter for Farmers Savings Bank and the communities it serves. He emphasized Civista’s alignment with Farmers Savings Bank’s values regarding personalized customer service and community investment, with confidence that the merger will lead to expanded offerings and improved customer resources while respecting the longstanding relationships cultivated over the years.
The preliminary deal structure indicates that Civista will disburse $34.925 million in cash and issue approximately 1.43 million common shares in acquiring Farmers. This places the total estimated merger value at around $70.4 million, based on Civista's common shares' closing price on July 9, 2025. The merger has received unanimous support from both companies' boards of directors and is expected to finalize in the fourth quarter of 2025, pending approval from Farmers Savings Bank shareholders and all necessary regulatory bodies.
As preparation for the merger progresses, thorough due diligence has been conducted to ensure a smooth transition. The acquisition is projected to boost Civista's diluted earnings per share by approximately 10% as cost savings materialize post-merger. Additionally, any potential decline in tangible book value resulting from the merger is anticipated to recover within approximately three years after the closing date, maintaining sufficient capital ratios above the regulatory requirements.
In conjunction with these developments, Civista plans to hold an investor conference call and live webcast on July 11, 2025, offering stakeholders a chance to gain deeper insights into the merger. Attendees can participate via a phone call or access the event through Civista's webpage. Financial and legal advisers like Piper Sandler & Co. and Vorys, Sater, Seymour and Pease LLP, respectively, are heavily involved in the process, ensuring that all regulatory compliance and strategic objectives are met efficiently.
Through this merger, Civista is reinforcing its market positioning while simultaneously enhancing service delivery within the communities of Spencer, Wellington, and beyond. The collaboration aims to capitalize on shared values of community engagement and financial service excellence, marking a significant moment for both organizations as they advance towards a promising future together.
Topics Financial Services & Investing）
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