Sutherland, Iowa-based Old O'Brien Banc Shares Inc. applied with the Federal Reserve Bank of Chicago to merge with Elma, Iowa-based R & J Financial Corp. Inc. and indirectly acquire Peoples Savings Bank.
Terms of the deal were not disclosed in the Federal Register.
S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between March 15, 2018, and March 15, 2019, averaged 161.16% of book and 172.08% of tangible book and had a median of 20.00x last-12-months earnings, on an aggregate basis.
Old O'Brien Banc Shares will enter Howard County, Iowa, with one branch to be ranked third with a 14.47% share of approximately $380.7 million in total market deposits, according to S&P Global Market Intelligence data.
As of Dec. 31, 2018, Old O'Brien Banc Shares, the parent company of Security State Bank, had approximately $140.0 million in total consolidated assets, while R & J Financial had approximately $77.8 million in assets.