Ohio-based banks Middlefield Banc Corp and Liberty National Bank have announced a merger worth approximately $64.4 million.
The transaction, expected to complete in the fourth quarter of 2022, will create a banking group with $1.8 billion in assets, a loan book worth $1.3 billion, and total deposits of $1.5 billion.
The merger has been approved by both boards of directors and is subject to shareholder and regulatory approval.
President and CEO of Middlefield, James Heslop II, said: “We are excited to announce our combination with Liberty Bancshares, which complements our growth in the Central Ohio market, and expands our footprint to the compelling Northwest Ohio market.
“Once the transaction is completed, we expect to benefit as a larger bank with… a robust footprint around two of Ohio’s largest and fastest growing markets.
“We believe this is a compelling transaction that generates meaningful earnings per share accretion, has a minimal tangible book value dilution and manageable earn-back period. We look forward to a prosperous partnership with Liberty and creating value for our combined customers, team members, communities, and shareholders.”
In accordance with the agreement, Liberty’s CEO Ronald Zimmerly, board chair Mark Watkins, and Spencer Cohn will be added to the Middlefield board of directors. Cohn represents Castle Creek Capital, one of Liberty’s largest shareholders.
Zimmerly said: “We are thrilled to join The Middlefield Banking Company, an organization that shares a common philosophy focused on supporting customers, employees, and communities. I am excited by the future we are creating together.”
Zimmerly will become president of The Middlefield Banking Company and Middlefield Banc Corp, subject to shareholder approval.