LCNB in Lebanon, Ohio, has agreed to buy Columbus First Bancorp in Worthington, Ohio.
The $1.3 billion-asset LCNB said in a press release Thursday that it will pay $67 million in stock for the $333 million-asset Columbus First. The deal is expected to close in the second quarter.
Columbus First has one branch, $291 million in loans and $270 million of deposits. LCNB opened a loan production office in the Columbus area in June.
“We believe that the Columbus market is one of the most-attractive markets in the Midwest, and this transaction should enhance LCNB’s long-term profitability metrics and earnings growth rate,” Steve Foster, LCNB’s president and CEO, said in the release.
John Smiley, Columbus First’s president and chief lending officer, will become LCNB’s Columbus market president. Two Columbus First directors, including Chairman and CEO Rhett Huddle, will join LCNB’s board.
LCNB said it expects the deal to be 1.6% accretive to its earnings per share in the first year of operation, and 9.7% accretive the following year, excluding $2.5 million in one-time transaction costs. It should take a little over four years to earn back the deal’s expected 6.5% dilution to LCNB’s tangible book value.
LCNB was advised by ProBank Austin and Dinsmore & Shohl. Columbus First was advised by Boenning & Scattergood and Vorys, Sater, Seymour and Pease.
