Sb Financial Group, Inc. · NASDAQ:SBFG
Sb Financial — Merger or Acquisition (February 2020)
8 slides from Sb Financial's merger presentation, February 2020
Slide 1: Announces The Acquisition Of Edon Bancorp
Announces The Acquisition Of February 2020
Slide 2: Caution Regarding Forward Looking Statements
CAUTION REGARDING FORWARD LOOKING STATEMENTS Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Se
Slide 3: Shared Mission and Values, Key Strategic Objectives
SHARED MISSION AND VALUES KEY STRATEGIC OBJECTIVES Community Focused Institution Driving Earnings Growth with Revenue Diversity Attentive to Customers Expanding New and Existing Client Relationships Disciplined Lending Practices Advancing Efficiency and Scale Entrepreneur Sales Culture with Balance
Slide 4: Company Overviews
COMPANY OVERVIEWS Combination of strong cultures, dedicated people and quality performance Corporate SBFG Edon Headquarters Defiance, OH Edon, OH CEO Mark A. Klein Lee Dick Offices 20 1 Employees 250 9 Balance Sheet / Asset Quality - 12/31/19 Total Assets ($000) $1,038,577 $61,922 Loans/Deposits 98.
Slide 5: Pro Forma Franchise
PRO FORMA FRANCHISE Strategic expansion bolsters our existing presence in Northwest Ohio and Northeast Indiana Pro Forma Highlights 21 Full service banking offices Loan 7 production offices Source: S&P Global Market Intelligence; Company-provided documents 5
Slide 6: Transaction Terms
6 TRANSACTION TERMS Prudent pricing, all-cash deployment of SBFG capital for a core deposit franchise in a low-risk transaction ▪ SB Financial Group, Inc. (“SBFG”) will acquire 100% of Edon Bancorp, Transaction Inc.’s (“Edon”) outstanding common stock Consideration Mix ▪ 100% Cash ▪ $103.50 per shar
Slide 7: Transaction Impacts
TRANSACTION IMPACTS PUTTING OUR CAPITAL TO WORK Franchise Value Impact Capital Impact ANNUAL EPS ACCRETION Approximately 9.0 -10.0% 11.6% TE/TA 10.6% TBV PAYBACK PERIOD 3.8 Years (CROSSOVER METHOD) 11.4% Leverage Ratio DAY 1 TBV DILUTION Approximately 4% 10.3% INTERNAL RATE OF RETURN Greater than 15
Slide 8: Transaction Summary
TRANSACTION SUMMARY ▪ Core deposit franchise – acquiring low cost (0.36%) deposits ▪ Strategic deployment of SBFG’s excess capital ▪ Additive to agricultural lending portfolio in Williams County ▪ Acquiring the dominant banking franchise in the city of Edon - #1 deposit market share ▪ Third largest
SB Financial Group — Merger or Acquisition (February 2020) on 6ix