F&M expands northeast Ind. operations with Limberlost acquisition

Farmers & Merchants Bancorp in Archbold, Ohio, has agreed to buy Limberlost Bancshares in Geneva, Ind.

The $1.1 billion-asset Farmers & Merchants said in a press release Monday that it will pay $88.8 million in cash and stock for the $287 million-asset Limberlost. The deal is expected to close by early 2019.

Limberlost, the parent of Bank of Geneva, has six branches, $257 million in loans and $212 million in deposits.

“F&M is pleased to combine our two strong institutions, which have a shared vision and shared values,” Paul Siebenmorgen, Farmers & Merchants’ president and CEO, said in the release. The acquisition “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.”

Andrew Briggs, Limberlost’s chairman, will join Farmers & Merchants’ board. Phil Lucas, an executive vice president at Bank of Geneva, will join Farmers & Merchants’ bank as a senior vice president.

Farmers & Merchants said it expects the transaction to be about 13% accretive to its earnings per share in the first full year after the deal closes, excluding one-time merger costs. It should take less than three years for Farmers & Merchants to earn back the expected 6.1% dilution to its tangible book value.

Farmers & Merchants said it expects to incur about $.5 million in merger-related expenses.

Farmers & Merchants was advised by ProBank Austin and Shumaker, Loop & Kendrick. Limberlost was advised by Renninger & Associates and SmithAmundsen.

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