Lodi, Calif.-based Farmers & Merchants Bancorp on Oct. 10 completed its acquisition of Rio Vista, Calif.-based Bank of Rio Vista.
Under the deal, Bank of Rio Vista shareholders owning 2,414 shares, or 60.35% of the outstanding common shares, received $28.7 million in cash.
Farmers & Merchants Bancorp over the past year acquired 1,586 shares, or 39.65% of the outstanding common shares, of Bank of Rio Vista for $12 million. The total price paid for all Bank of Rio Vista common shares was $40.7 million, or approximately 1.5x the Sept. 30 book value of Bank of Rio Vista.
The combined institution has approximately $3.4 billion in total assets, with 30 locations serving California's Central Valley and the San Francisco East Bay Area region.
Farmers & Merchants Bancorp expects the acquisition to be accretive to earnings in 2019, the first full year of combined operations.