Brookville, Ind.-based FCN Banc Corp. agreed to acquire Lawrenceburg, Ind.-based DSA Financial Corp. in a deal valued at about $18.3 million.
DSA Financial shareholders will either receive $13.75 in cash or 0.3819 of a FCN Banc common share. The deal consideration mix will involve 40% to 50% in stock, with the remainder to be paid in cash.
DSA Financial unit Dearborn Savings Bank will merge into FCN Banc subsidiary FCN Bank NA. Upon deal closing, which is expected in the first quarter of 2020, two directors from Dearborn Savings Bank will be appointed to FCN's board.
FCN Banc had total assets of $456.3 million, and DSA Financial had total assets of $131.9 million, both as of June 30, according to S&P Global Market Intelligence data. The deal will add roughly $132 million in assets, $101 million in loans, and $107 million in deposits for FCN Bank, according to a news release.
S&P Global Market Intelligence calculates the deal is 119.55% of common equity on an aggregate basis. The deal value is 13.88% of assets and 16.63% of deposits.
S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Aug. 29, 2018, and Aug. 29, 2019, averaged 149.39% of book and 151.64% of tangible book and had a median of 21.41x last-12-months earnings on an aggregate basis. Valuations also averaged 160.99% of book and 161.58% of tangible book and had a median of 23.28x last-12-months earnings on a per-share basis.
FCN Banc will enter Dearborn County, Ind., with one branch to be ranked fourth with a 10.34% share of approximately $894.73 million in total market deposits.
Capital Market Securities Inc. was financial adviser to FCN Banc, while SmithAmundsen LLC was its legal counsel. Sandler O'Neill & Partners LP was financial adviser to DSA Financial, and Barnes & Thornburg LLP was its legal counsel.
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