LCNB Corp. in Lebanon, Ohio, has agreed to buy BNB Bancorp in Brookville, Ohio.

The $1.1 billion-asset LCNB will pay $12.6 million, or $45 a share, in cash and stock for the $109 million-asset parent of Brookville National Bank. The transaction values BNB at 119% of its tangible book value.

LCNB said in a press release Monday that it expects to cut about 35% of BNB's annual noninterest expenses. Excluding one-time acquisition expenses of $600,000, the transaction is expected to be about 1% accretive to LCNB's 2015 earnings in 2015 and 3% accretive in subsequent years.

"This acquisition continues our strategy of being an acquirer of choice of attractive banks in and around our core markets," Stephen Wilson, LCNB's chairman and chief executive, said in the release.

LCNB was advised by FBR Capital Markets and Dinsmore & Shohl. BNB was advised by Austin Associates and and Shumaker, Loop & Kendrick, LLP.

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