LCNB Corp. (LCNB) in Lebanon, Ohio, has agreed to buy Eaton National Bank & Trust in Eaton, Ohio, for $24.8 million in cash.
The $944 million-asset LCNB will purchase 100% of Eaton National's outstanding stock from its holding company, Colonial Banc Corp. (CBC), according to a Monday press release. Eaton National will then be merged into LCNB National Bank, with all five of its Preble County branches adopting the LCNB name and brand.
LCNB plans to raise $25 million in a public offering to facilitate the acquisition.
The deal, expected to close in the first quarter, would give LCNB $1.1 billion of assets, $976 million of deposits and 36 branches in southwestern and south central Ohio. The purchase excludes roughly $10.3 million in Florida loans and $2.2 million in other assets, which will be sold back to CBC on par as part of the stock purchase agreement.
Excluding one-time, after-tax acquisition expenses of $900,000 the transaction is expected to be 5% to 7% accretive to LCNB's earnings.
"We are very pleased to be expanding into the Preble County market with this transaction," LCNB Chairman and Chief Executive Stephen Wilson said in the release. "Eaton National is well respected and its team has done an excellent job in building the bank to its current position. Now, as part of LCNB, we believe that we will be able to broaden our reach in serving consumers and businesses in this new market and adjacent markets."
In January, LCNB bought First Capital Bancshares in Chilicothe, Ohio, for $19.6 million.