2 Iowa-based banks to merge

Sutherland, Iowa-based Security State Bank agreed to acquire Frederika, Iowa-based Farmers Savings Bank, according to an announcement posted on Farmers Savings Bank's website.

Financial terms of the transaction were not disclosed.

S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Nov. 18, 2020, and Nov. 18, 2021, averaged 136.68% of book and 145.15% of tangible book and had a median of 16.63x last-12-months earnings, on an aggregate basis.

The merger is expected to close in the first quarter of 2022.

Security State Bank, a unit of Old O'Brien Banc Shares Inc., had $270.7 million in assets as of Sept. 30, according to S&P Global Market Intelligence data. Farmers Savings Bank had assets of $53.1 million as of the same date.

Upon completion of the deal, Old O'Brien Banc Shares will enter Bremer County, Iowa, with one branch to be ranked eighth with a 4.34% share of approximately $1.04 billion in total market deposits, according to S&P Global Market Intelligence data.

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