First Bancorporation of Ohio Completes Acquisition of The CIVISTA Corporation

Strategic Insights -

First Bancorporation of Ohio (FBOH) has successfully completed the acquisition of The CIVISTA Corporation, a savings and loan holding company headquartered in Canton, Ohio. The acquisition involves a tax-free exchange of 1.723 shares of FBOH common stock for each of the 3,573,888 shares of outstanding CIVISTA common stock. As a result, First Bancorporation has merged its subsidiary The First National Bank in Massillon with CIVISTA's subsidiary Citizens Savings Bank of Canton to form Citizens National Bank, a $1 billion full-service commercial bank.

Key Takeaways:

  • First Bancorporation exchanged 1.723 shares of FBOH common stock for each share of outstanding CIVISTA common stock, totaling 3,573,888 shares.
  • The acquisition resulted in a one-time charge of $16.2 million in the first quarter, approximately $0.48 per share of common stock.
  • The Corporation believes that operating as a commercial bank will provide numerous growth and profitability opportunities, representing an investment in the future.
  • Approximately $12.4 million of the charge relates to the recapture of tax benefits available to savings and loan associations.
  • First Bancorporation's wholly owned subsidiaries serve multiple counties in Ohio and Florida, while Life Savings Bank, FSB serves the Clearwater, Florida area.
  • The acquisition adds approximately $800 million in assets and an earnings stream of approximately $11 million to First Bancorporation.
  • The result is a $5.7 billion holding company with a market capitalization of approximately $766.3 million.

Statistics:

  • 1.723 shares of FBOH common stock were exchanged for each share of outstanding CIVISTA common stock.
  • The one-time charge in the first quarter amounts to $16.2 million or approximately $0.48 per share of common stock.
  • Approximately 20 branches will comprise the new Citizens National Bank, the largest commercial bank headquartered in Stark County.
  • First Bancorporation's subsidiaries serve a total of 17 counties in Ohio and 2 counties in Florida.
  • The market capitalization of the new holding company is approximately $766.3 million.

Sources:

  • First Bancorporation of Ohio PRNewswire release, January 31, 1995