One of Daviess County’s two locally owned financial institutions has been sold to a southeastern Indiana banking company.
It was announced Monday afternoon that the First National Bank of Odon is being acquired by First Savings Financial Group. First Savings operates 14 offices in southeastern Indiana, including offices in Sellersburg, New Albany, Corydon, English, and Salem. First National Bank of Odon is a majority owned subsidiary of Dearmin Bancorp and operates offices in Odon and Montgomery.
The all-cash transaction is valued at approximately $10.6 million or $265 per share of FNBO stock. The price represents 132% of FNBO’s tangible book value.
First Savings CEO Larry W. Myers says they are excited for the opportunity to partner with the First National Bank of Odon and says it will give First Savings the opportunity to establish a new market in which to expand their franchise. Priscilla Dearmin Turner of FNBO said in a press release praised First Savings’ commitment to preserve true community banking, local decision making, local staff, and personal one-to-one service. She went on to say the merger will allow the bank to offer higher lending limits to serve the business and agricultural communities.
Closing on the merger is expected to take place in the 4th quarter of 2017.