First Defiance Financial Corp. (NASDAQ: FDEF), the holding company for First Federal Bank of the Midwest, announced today the signing of a definitive agreement to acquire Columbus, Ohio-based First Community Bank. Under the merger agreement, First Federal will acquire First Community Bank in a cash transaction in which First Community will merge with and into First Federal .
First Community Bank operates four branches in the Columbus, Ohio market and was founded in 1903. At December 31, 2013, First Community had assets of $101.4 million, loans of $65.4 million, deposits of $90.5 million and common equity of $10.6 million.
Under the terms of the merger agreement, First Federal will pay $12.9 million in cash for all outstanding shares of First Community Bank, subject to certain adjustment factors. The transaction has been unanimously approved by the board of directors of both parties. The transaction is expected to be completed by the end of the third quarter 2014, subject to regulatory approvals and other customary closing conditions. First Defiance expects the transaction to be immediately accretive to 2014 diluted earnings per share, excluding restructuring charges.
"We are excited to announce our expansion into the Columbus market with the acquisition of First Community Bank. We believe that First Community’s ‘customer and community first’ philosophy is a great match with First Defiance’s culture. We also believe First Community’s customers will receive the same superior customer service they have become accustomed to, while benefiting from a broader array of products and services, such as insurance and wealth management, as well as a greater variety of loan and deposit products,” stated Donald P. Hileman, President and CEO of First Defiance Financial Corp.
Sherran Blair, Chairman, President and CEO of First Community, also noted, “We are very happy to partner with such a quality community bank. First Defiance has been serving its local communities for over 90 years and they share our vision and community banking philosophies. First Community has been owned by my family for generations and I am very pleased to see the bank’s legacy continue as part of such a strong company.”