Montpelier bank sold to Rurban for $25M
5/24/2008MONTPELIER, Ohio - One of the last locally owned banks in Williams County, the National Bank of Montpelier, is being purchased by an area rival, Rurban Financial Corp., after 75 years in operation, Defiance-based Rurban announced yesterday.
Rurban has agreed to pay shareholders of NBM Bancorp Inc., Montpelier bank's parent company, $113.98 for each of the 219,334 shares outstanding, a 35 percent premium over book value.
The $25 million transaction is expected to close in the third quarter, pending approval of banking regulators and shareholders.
The acquisition agreement calls for National Bank's five offices in Montpelier, West Unity, Pioneer, and Bryan to change their names and begin operating under Rurban's State Bank and Trust Co. subsidiary.
At the end of the first quarter this year, the Montpelier firm had assets of $109 million, loans of $45 million, and deposits of nearly $90 million.
Rurban, which is publicly traded under the symbol RBNF, operates 17 branches of its State Bank and Trust in Allen, Defiance, Fulton, Lucas, Paulding, and Wood counties in Ohio, as well as Allen County, Ind.
Company CEOs from both organizations said the combined company would be better suited to offer customers expanded products and services and would be financially stronger.
"We think this will be good for us and good for our [33] employees," NBM Bancorp CEO Al Fiser said. "We really don't expect too many changes."
National Bank of Montpelier has about 4,500 customers in Williams, Fulton, and Hillsdale counties.