SB Financial entering new Ohio market with Edon Bancorp deal

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SB Financial in Defiance, Ohio, has agreed to buy Edon Bancorp in Edon, Ohio.

The $1 billion-asset SB said in a press release Friday that it will pay $15.5 million in cash for the $62 million-asset Edon. The deal, which is expected to close in the second quarter, priced Edon as 135% of its tangible book value.

The deal allows SB to enter Williams County in Ohio. Edon has one branch and a 36% loan-to-deposit ratio. SB said it plans to replace $25 million in securities held by Edon into loans by the end of 2020.

SB and Edon “are deeply committed to their employees, their customers, and the communities they serve,” Mark Klein, SB’s president and CEO, said in the release. “We also share similar values of developing authentic relationships with customers, and being their trusted financial advisor.”

The deal should be 9% accretive to SB’s earnings per share. It should take the company less than four years to earn back an expected 4% dilution to its tangible book value.

SB plans to cut about 40% of Edon’s annual noninterest expenses.

Janney Montgomery Scott and Hogan Lovells advised SB. Donnelly Penman & Partners and Howard & Howard advised Edon.

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