In a significant move within the banking sector, Civista Bancshares, Inc. has entered into a definitive agreement to acquire The Farmers Savings Bank in a merger transaction valued at around $69.85 million. The merger agreement, dated July 10, 2025, outlines that The Farmers Savings Bank will merge with Civista Bank, with Civista Bank as the surviving entity in the merger.
Under the terms of the merger agreement, each common share of Farmers will be converted into the right to receive a combination of $69,850 in cash and approximately 2,869 shares of Civista common stock. Notably, the Merger Consideration is subject to potential adjustments based on the closing amount of Farmers’ shareholders' equity. Civista will not issue fractional shares; instead, cash will be provided for any fractional shares based on the average closing price of Civista shares on the Nasdaq Capital Market.
The strategic rationale behind this merger is to bolster Civista's market presence and expand its customer base by integrating Farmers’ operations. Civista's management believes that this acquisition will enhance its growth trajectory and financial performance, providing a greater competitive edge in the market.
The special meeting of Farmers’ shareholders is scheduled for November 4, 2025, where shareholders will vote on the adoption and approval of the merger agreement. For the merger to proceed, it requires the affirmative vote of at least two-thirds of the Farmers’ common shares outstanding as of the record date of September 18, 2025. Additionally, the consummation of the merger is subject to regulatory approvals, ensuring compliance with antitrust laws and other regulatory requirements.
For shareholders, employees, and the broader market, the merger is expected to create a more robust financial institution capable of delivering enhanced services and products. Civista's common shares are presently traded under the symbol 'CIVB' on the Nasdaq, while Farmers’ shares are not publicly traded. As such, Farmers shareholders are encouraged to monitor Civista’s stock performance, as the merger consideration will largely depend on Civista's share price at the time of the merger closure.
Overall, this merger represents a key strategic initiative for Civista Bancshares as it aims to solidify its standing in the competitive banking landscape while providing Farmers’ shareholders with a significant cash and stock payout. The upcoming special meeting will be a pivotal moment for both institutions as they seek to finalize this transformative transaction.