WORTHINGTON, Ohio and
MINERVA, Ohio, Dec. 29, 2020 /PRNewswire/ -- CFBank,
National Association ("CFBank") and Consumers National Bank
("Consumers") have announced the signing of a branch purchase and
assumption agreement pursuant to which Consumers will acquire the
Wellsville, Ohio drive-up branch
and the Calcutta, Ohio branch of CFBank.
The purchase and assumption agreement provides for the transfer
by CFBank to Consumers of the land, buildings and other associated
assets of the two branches, approximately $100 million in deposits, and certain loans and
other interest earning assets. In exchange, Consumers will
pay to CFBank the net book value of the land, building and
associated assets of the branches, the par value of the earning
assets, and a deposit premium equal to 1.75% of the average daily
deposits for the 30 days preceding closing.
The purchase of the branches by Consumers is subject to
regulatory approval and satisfaction of certain customary closing
conditions. The parties expect to close on the purchase and sale of
the two CFBank branches in the second calendar quarter of 2021, at
which point the branches will be converted to operate as Consumers
branch offices. Consumers expects approximately 10% EPS
accretion and to recover the initial approximately 2% tangible book
value per share dilution in 1.75 years. On a pro forma basis,
Consumers' total assets will approximate $850 million and its capital ratios are projected
to remain strong and supportive of continued balance sheet
growth.
"The acquisition of these branches will strengthen our
competitive position in Columbiana
County and will complement our four Jefferson County locations. Consumers
will hold approximately 12.5% of the Columbiana County deposit market share. These
locations will house commercial and mortgage lenders and will
provide a full range of consumer and business services. We
are excited that the current retail employees in Wellsville and Calcutta will help us serve the region's
consumer, small business, and agricultural communities. They,
and their predecessors, have served the community since 1892. We
look forward to them joining our team as we continue the community
bank tradition in the region," said Ralph
J. Lober II, Consumers' President and CEO.
Tim O'Dell, President and CEO of
CFBank, commented: "The divestiture of these two branches is
consistent with our strategic business plan and the overarching
objective to deploy capital into areas that yield the greatest
opportunity to strengthen franchise value. The sale of the
Columbiana County branches allows us to gain greater efficiencies
in our core markets and to focus our sales efforts in those
communities. CFBank traces our bank's founding to the Columbiana County region in 1892, and we will
remain incredibly grateful to the people of this region for their
loyal support extended to our bank for these many
decades. However, we are pleased that Consumers Bank will be
taking over the reins from CFBank to continue serving the banking
needs of the Columbiana County
region. Consumers Bank and its leadership highly value local
communities and personal relationships in much the same way we do,
and we are pleased and confident that our loyal CFBank employees
and staff in Columbiana County
will be in good hands, and the people of the Columbiana County region will continue to have
their banking needs well served."
Boenning & Scattergood, Inc. and Vorys, Sater, Seymour and
Pease LLP are acting as financial advisor and legal advisor,
respectively, to CFBank. Piper Sandler & Co. and Tucker
Ellis LLP are acting as financial advisor and legal advisor,
respectively, to Consumers.
About CFBank: CFBank, National Association is the
wholly-owned national bank subsidiary of CF Bankshares Inc.
(NASDAQ: CFBK), a financial holding company headquartered in
Columbus, Ohio. CFBank, which
has operated in Ohio since 1892,
has a presence in four major Metro Ohio markets – Columbus, Cleveland, Cincinnati and Akron markets – as well as its two locations
in Columbiana County, Ohio.
CFBank provides personalized Business Banking products and
services including commercial loans and leases, commercial and
residential real estate loans and treasury management depository
services, corporate treasury management, residential lending, and
full-service retail banking services and products. In
addition, CFBank also has a national residential lending
platform. Additional information about CF Bankshares Inc. and
CFBank is available at www.CFBankOnline.com.
About Consumers National Bank: Consumers National Bank is
the single bank subsidiary of Consumers Bancorp Inc (OTCQX: CBKM).
The $750 million asset independent
community bank provides a comprehensive line of banking and other
investment services to business and personal customers through its
main office in Minerva, 17
full-service branch locations throughout Carroll, Columbiana, Jefferson, Stark, and Summit counties, and its Wayne County loan production office.
More information about Consumers National Bank can be accessed
online at www.ConsumersBank.com. Member FDIC.
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SOURCE CF Bankshares Inc.