Farmers & Merchants to acquire Limberlost Bancshares in $88.77M transaction
Farmers & Merchants announced that they have signed a definitive merger agreement whereby F&M will acquire Limberlost Bancshares, the holding company for Bank of Geneva, in a combination stock and cash transaction. Bank of Geneva operates six full-service offices in northeast Indiana and has approximately $287M in assets, $257M in loans, $212M in deposits and $30.6M in consolidated equity as of June 30. Limberlost is taxed as an S-Corporation. Subject to the terms of the merger agreement, which has been approved by the board of each company, Limberlost shareholders will receive 1,830 shares of F&M common stock for each outstanding share of Limberlost common stock plus $8,465 in cash. Limberlost currently has 1,000 shares of common stock outstanding. Based on the F&M closing share price as of August 17, the transaction is valued at approximately $88.77M in aggregate. The transaction will significantly increase F&M's presence in northeast Indiana. Bank of Geneva operates offices in the Indiana communities of Geneva, Berne, Monroe, Monroeville, Portland and Decatur. F&M has 21 offices in Ohio and 4 offices in Indiana.