Lawrenceburg-based United Community Bancorp (Nasdaq: UCBA) has been acquired by Civista Bancshares Inc. (Nasdaq: CIVB) of Sandusky, Ohio. The merger has been approved by the boards of directors of both companies and is worth about $114 million.
United shareholders will receive the equivalent to 1.027 shares of Civista common stock and $2.54 in cash per share of United common stock. The combined company would have total assets of $2.1 billion, loans of $1.5 billion, and total deposits of $1.7 billion.
United operates eight branches in southeastern Indiana, with five located within the Cincinnati MSA, which allows Civista to expand from its branches and production offices in Northern Ohio to the 2.1 million people of the Cincinnati area.
"This is an extraordinary opportunity for Civista and we are very excited to welcome United’s customers and employees to the Civista family," said CEO and President Dennis G. Shaffer. "United, including its two predecessors, has maintained a strong and stable presence in their local communities for over 100 years. We look forward to collaborating with United’s leadership team to grow and enhance their banking platform while maintaining strong ties to their community. Michael McLaughlin, UCB’s Chief Operating Officer, will be named Market Executive and Mark Sams, UCB’s Chief Credit Officer, will continue to lead the commercial lending efforts in the market. Civista plans to keep all eight UCB branch offices open. We believe the long-term growth potential of this partnership offers substantial upside for shareholders of both organizations."
Terms of the deal imply the value per share at $26.22, with the transaction likely to close in the third quarter of this year. Three United directors will join the Civista Bank Board of Directors and two of those directors will join the Civista Bancshares, Inc. Board of Directors.