Lebanon, Ohio-based LCNB Corp. is continuing to expand in the Cincinnati region by acquiring Eagle Financial Bancorp in a $23.1 million, stock-and-cash deal.
By acquiring $175 million, Cincinnati-based Eagle Financial Bancorp, LCNB will grow to $2.5 billion with 36 branches in Ohio, including 25 branches and $1.4 billion in deposits in the Cincinnati region. Eagle Financial subsidiary EAGLE.bank has three branches in Cincinnati.
The deal, which is expected to close in the second quarter of next year, is LCNB Corp.’s second Cincinnati-area deal announced this year. On Nov. 1, the company completed on its $43.7 million acquisition of Cincinnati Bancorp. The $304.7 million Cincinnati Bancorp had five branches in Cincinnati and northern Kentucky.
LCNB President and CEO Eric Meilstrup said the Eagle Financial deal will improve his company’s long-term profitability metrics and earnings growth rate. “The combining of our two institutions will provide more benefits, financial products and opportunities for Eagle’s customers, and create the premier community banking institution in the Cincinnati/northern Kentucky market,” he added.
EFBI Chair and CEO Gary Koester said LCNB “shares a common philosophy focused on supporting customers, employees and communities. As part of a larger organization, we believe our customers will benefit from expanded financial products and resources, including trust and wealth management solutions, as well as greater access to additional full-service bank locations throughout the greater Cincinnati market.”
EFBI and EAGLE.bank President Patricia Walter will join LCNB as executive vice president.
“We also believe that our employees will have greater opportunities for growth and advancement as part of a larger community bank with such an outstanding reputation,” Koester added. “Finally, we believe our shareholders will also benefit as part of a larger bank with greater liquidity, strong earnings power, and a very attractive dividend yield.”
LCNB expects the deal to be modestly accretive next year before increasing to 11.5 and 11.1 percent accretive to 2025-26 fully diluted earnings per share, respectively. Eagle Financial Bancorp shareholders will be able to elect to receive either 1.1401 shares of LCNB stock or $19.10 per share in cash for each share of EFBI common stock owned, subject to between 60 percent and 70 percent of EFBI shares being exchanged for LCNB common stock. Tangible book value per share dilution is expected to be approximately 2.4 percent at closing, with an anticipated earn-back of approximately 2 years.
LCNB is being advised by Inverness, Ill.-based Hovde Group, LLC and Cincinnati-based Dinsmore & Shohl LLP. EFBI is being advised by Philadelphia-based Janney Montgomery Scott LLC and Washington, D.C.-based Luse Gorman, PC.