Farmers & Merchants Bancorp in Archbold, Ohio, has agreed to buy Ossian Financial Services in Indiana.
The $1.9 billion-asset F&M said in a press release Monday that it will pay $20 million in cash for the $122 million-asset Ossian. The consideration is subject to adjustment if Ossian’s equity capital is less than $12 million at closing.
The deal is expected to close in the second quarter.
Ossian has two branches, $58 million of loans and $108 million of deposits.
F&M said in its release that the deal is a “complementary fit” with its recent purchases of Adams County Financial Resources and Bank of Geneva.
Ossian “immediately enhances and complements our growing franchise in northeast Indiana,” Lars Eller, F&M’s president and CEO, said in the release. “This is an excellent opportunity for [Ossian] to become part of a larger community banking organization that will allow us to offer their customers a wider range of financial services.”
F&M said that, excluding one-time merger-related costs, the deal should be about 6.2% accretive to its earnings per share in its first year. It should take less than five years to earn back the acquisition’s expected 4.6% dilution to F&M’s tangible book value.
F&M was advised by ProBank Austin and Shumaker, Loop & Kendrick. Ossian was advised by Renninger & Associates and SmithAmundsen.
