Investment Banking - Tri-State 1st Banc, Inc.

Transactions | Banking

Client: Tri-State 1st Banc, Inc.
Industry: Banking
Transaction Type: Mergers & Acquisitions
Role: Sell-Side Advisor

  • Tri-State 1st Banc, Inc. (OTC Pink: TSOH) is the holding company for 1st National Community Bank, a $139 million bank headquartered in East Liverpool, Ohio.  TSOH operates five locations in Columbiana County, Ohio and Beaver County, Pennsylvania.
  • As of March 31, 2015, TSOH had assets of $139.4 million, loans of $66.1 million, deposits of $122.9 million, shareholders’ equity of $10.95 million, return on equity of 8.77%, net interest margin of 3.37% and a nonperforming assets to assets ratio of 1.25%.
  • Farmers National Banc Corp. (NASDAQ: FMNB) is a financial holding company with assets of approximately $1.7 billion, following the recent close of its merger with National Bancshares Corporation of Orrville, Ohio (Boenning served as financial advisor to National Bancshares in that transaction).  FMNB operates 33 branches throughout Mahoning, Wayne, Trumbull, Columbiana, Stark and Medina counties through its banking subsidiary, Farmers National Bank of Canfield, headquartered in Canfield, Ohio.
  • TSOH will receive consideration of $14.20 in cash or 1.747 shares of FMNB common stock.  FMNB will purchase 75% of the TSOH shares for stock and 25% for cash.
  • The total merger consideration is approximately $14.1 million, based on the 20-day volume weighted average price of FMNB of $8.1264.
  • The purchase price is approximately 141.0% of tangible book value and 14.8 times LTM Core EPS.
  • Boenning is serving as financial advisor and has issued a fairness opinion to Tri-State 1st Banc.