First Defiance to Buy Commercial Savings Bank in Ohio

First Defiance Financial in Defiance, Ohio, has agreed to buy Commercial Bancshares in Upper Sandusky, Ohio.

The $2.4 billion-asset First Defiance said in a press release Tuesday that it will pay $63 million, or $51 a share, in cash and stock for the $342 million-asset parent of Commercial Savings Bank. The deal is expected to close in the first quarter.

The transaction, after one-time costs, is expected to be immediately accretive to earnings. It should take First Defiance about two years to earn back any dilution to its own tangible book value.

Commercial Savings has $301 million in deposits and $298 million in loans.

Commercial Savings "is a high-quality bank with an established customer base, a strong balance sheet and similar core values," Donald Hileman, First Defiance's president and chief executive, said in the release. "This combination will be an excellent fit culturally. In addition, this merger provides an extension of our growing market area."

First Defiance was advised by Raymond James and Vorys, Sater, Seymour & Pease. Commercial Bancshares was advised by Keefe, Bruyette & Woods and Shumaker, Loop & Kendrick.

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