Civista Bancshares, Inc. (Civista) is in the process of acquiring The Farmers Savings Bank (Farmers) in a significant merger transaction. The merger is structured under an Agreement and Plan of Merger dated July 10, 2025, wherein Farmers will merge into Civista Bank, with Civista Bank being the surviving entity in the merger.
### Financial Implications The deal is valued at approximately $69.85 million. Under the terms of the merger agreement, each outstanding Farmers common share will be converted into the right to receive cash and Civista common shares. Specifically, shareholders will receive $69,850 in cash and approximately 2,869 shares of Civista common stock. The Merger Consideration is subject to adjustments based on the closing amount of Farmers’ shareholders equity.
Civista’s common shares are traded on the Nasdaq Capital Market under the symbol "CIVB." As of September 29, 2025, the closing price of Civista common shares was not specified, but it was noted that the last trading price prior to the merger announcement on July 9, 2025, was $24.72.
### Strategic Rationale The merger is expected to enhance Civista's market position and expand its footprint in Ohio, leveraging Farmers' established customer base and community presence. The consolidation aims to achieve operational efficiencies and broaden the range of services offered to customers across both entities. Farmers’ board of directors has unanimously approved the merger, highlighting its potential to create value for shareholders and enhance long-term growth opportunities.
### Timeline and Next Steps A special meeting for Farmers' shareholders is scheduled for November 4, 2025, at 2:00 PM Eastern Standard Time, at Farmers’ main office in Spencer, Ohio. At this meeting, shareholders will vote on the adoption and approval of the merger agreement, which requires a two-thirds majority of the votes cast. Additionally, the meeting agenda includes a proposal to adjourn the session if necessary to gather more proxies to reach the required vote.
### Market Impact The merger could have significant implications for shareholders, employees, and the broader market. For Farmers' shareholders, the merger provides liquidity through cash and Civista stock, potentially offering an investment in a larger entity with greater resources. Employees of Farmers may benefit from expanded career opportunities within a larger organization, while the community could see enhanced financial services and products.
### Regulatory Considerations The merger is subject to regulatory approval from applicable agencies, and both companies must meet the necessary conditions for consummation of the deal. The completion of the merger will also involve compliance with various legal requirements, particularly those pertaining to shareholder rights and financial disclosures.
Overall, the proposed merger between Civista Bancshares and The Farmers Savings Bank represents a pivotal moment for both institutions, promising strategic growth and enhanced shareholder value as they prepare for a final vote on the merger agreement in November.