Ohio-based Farmers & Merchants Bancorp. Inc. (Nasdaq: FMAO) has announced plans to acquire Limberlost Bancshares Inc. in Adams County. The $88.8 million deal for Limberlost, the parent of Bank of Geneva, is expected to close in late 2018 or early 2019.
The acquisition has been approved by the boards of directors of each company. When complete, Limberlost shareholders will receive 1,830 shares of F&M common stock for each outstanding share of Limberlost common stock they own, plus $8,465 in cash. F&M will take over the six Bank of Geneva offices in Indiana, more than doubling its presence in the Hoosier state.
"F&M is pleased to combine our two strong institutions, which have a shared vision and shared values," said Paul Siebenmoren, chief executive officer of F&M. "This is an excellent opportunity for the Bank of Geneva to become part of a larger community banking organization that will allow us to offer customers in the communities served a wider range of financial services while still preserving the convenience of local decision makers throughout our office network."
Limberlost Chairman Andrew Briggs will be appointed to the board of directors of F&M and its subsidiary, Farmers & Merchants State Bank. Bank of Geneva Executive Vice President Phil Lucas will become senior vice president of Farmers & Merchants State Bank.
F&M says it will have consolidated assets of about $1.5 billion following the acquisition, which remains subject to regulatory approvals, Limberlost shareholder approval, and other customary closing costs.