SB Financial Group (SBFG), the parent company of State Bank, has successfully completed the acquisition of Marblehead Bancorp, the parent company of The Marblehead Bank. This acquisition, finalized after a definitive agreement was signed in August 2024, marks a significant step in SB Financial’s strategy to expand its presence in the Northwest Ohio market. The merger strengthens SB Financial’s competitive position, enhances its customer base, and broadens its service offerings across the region.
Strategic Merger to Expand Market Footprint
The merger between SB Financial and Marblehead Bancorp has been approved unanimously by the boards of directors of both companies, as well as their respective subsidiary banks. The integration of Marblehead Bancorp into SB Financial and the merger of The Marblehead Bank into State Bank is now complete, offering a host of strategic advantages for both organizations.
State Bank Chairman, President, and CEO Mark Klein expressed optimism about the merger, stating, “Both of our banks share a deep commitment to serving our stakeholders, and this merger strengthens our ability to deliver personalized financial solutions and community-focused service. I am excited to see our teams come together to enhance the banking experience for our customers and foster continued growth in the communities we proudly serve.”
The decision to move forward with the acquisition was a strategic one, aiming to solidify State Bank’s role as a leading community-focused financial institution in Northwest Ohio. By absorbing The Marblehead Bank, State Bank expands its customer base and increases its market share in the region.
Transaction Details and Financial Terms
As part of the acquisition, Marblehead shareholders received $196.31 in cash for each share they held, bringing the total value of the transaction to approximately $5 million. This all-cash deal underscores the commitment of SB Financial to deliver value to shareholders, while also ensuring that The Marblehead Bank’s legacy of community service is maintained.
Marblehead Bancorp, which owns The Marblehead Bank, was founded in 1907 and is an essential financial institution in the area. The Marblehead Bank has served the local communities of Marblehead, Danbury Township, and the surrounding Lake Erie areas for over a century, operating two full-service branches. Notably, it is considered the only physical banking institution on the Marblehead Peninsula, making its services vital to the region.
The merger allows SB Financial to leverage the strong community presence of The Marblehead Bank, providing a broader range of financial products and services to both new and existing customers. As part of the integration, State Bank now benefits from an enhanced position in this high-demand area of Ohio.
Integration Process and Community Commitment
With the deal now finalized, The Marblehead Bank has been fully integrated into State Bank, signaling the end of its operations as an independent entity. This merger represents a seamless transition that aims to preserve the local character of The Marblehead Bank while enhancing its capabilities with the resources and services offered by State Bank.
SB Financial is committed to preserving the community-oriented approach that Marblehead Bank has historically prided itself on. This commitment is crucial to the continued success of the merger, ensuring that existing customers will continue to receive the high level of personalized service they are accustomed to, while benefiting from State Bank’s expanded offerings.
Mark Klein further emphasized this point, noting the shared values between the two banks. “This merger strengthens our ability to deliver personalized financial solutions and community-focused service,” he said. This focus on community is expected to remain a cornerstone of State Bank’s operations as it moves forward in its new market.
Legal and Advisory Support
The successful completion of the deal was facilitated by several key advisors. SB Financial was advised by Vorys, Sater, Seymour, and Pease, a law firm providing legal guidance throughout the acquisition process. Additionally, Janney Montgomery Scott acted as the financial advisor to Marblehead Bancorp, offering a fairness opinion to the Board of Directors of Marblehead and assisting with the transaction’s financial aspects. On the legal side, Marblehead Bancorp was supported by Shumaker, Loop & Kendrick.
This network of legal and financial experts ensured that the deal adhered to all necessary regulatory requirements and that the transaction was completed efficiently. Their support played a crucial role in ensuring that the merger was structured in a way that was advantageous for both parties.
A Stronger Future for SB Financial
SB Financial’s acquisition of Marblehead Bancorp follows a similar strategy that the company executed in 2020, when it acquired Edon Bancorp, the parent company of Edon State Bank. This acquisition was part of a broader strategy to enhance its regional market share and strengthen its position as a key player in Ohio’s banking industry.
Looking ahead, SB Financial is poised for continued growth and success as it integrates The Marblehead Bank and expands its footprint across Northwest Ohio. The company’s strong commitment to community banking, combined with its strategic acquisitions, positions it well to meet the evolving needs of its customers. As the company enhances its offerings and services, it remains focused on delivering long-term value to its shareholders and fostering growth in the communities it serves.
Conclusion: A Strategic Move for SB Financial
The acquisition of Marblehead Bancorp is a significant milestone for SB Financial as it strengthens its position in the Northwest Ohio market. With the integration of The Marblehead Bank, SB Financial is poised to offer a broader range of services, increase its market presence, and maintain its commitment to community-based banking. As the company continues to execute its growth strategy, it remains focused on delivering exceptional financial solutions to its customers.
For investors, the completion of this merger signals a promising future for SB Financial. The company’s strategic acquisitions, strong financial foundation, and community-focused approach offer a solid platform for continued success in the competitive Ohio banking market.
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