Farmers & Merchants Bancorp in Lodi, Calif., has agreed to buy Delta National Bancorp in Manteca, Calif.
The $2.6 billion-asset Farmers & Merchants said in a press release Thursday that it will pay $6.6 million, or $17.30 a share, in common stock for the $106 million-asset Delta National. The deal is expected to close in the fourth quarter.
Farmers & Merchants said it expects the deal to be immediately accretive to its tangible book value and accretive to next year's earnings.
Farmers & Merchants was advised by Keefe, Bruyette & Woods and Stuart & Moore. Delta National was advised by FIG Partners and Horgan, Rosen, Beckham, & Coren.