Illinois-based CSB Financial Holdings to acquire Citizens Bancshares

Galva, Ill.-based CSB Financial Holdings Inc., the parent of Community State Bank, agreed to acquire Walnut, Ill.-based Citizens Bancshares Inc., the holding company for Citizens First State Bank of Walnut.

The financial terms of the transaction were not disclosed.

As of Dec. 31, 2021, Community State Bank had assets of $268 million, while Citizens First State Bank had assets of $56 million, according to a Jan. 27 news release.

S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Jan. 27, 2021, and Jan. 27, 2022, averaged 141.82% of book and 148.50% of tangible book and had a median of 16.53x last-12-months earnings, on an aggregate basis.

The deal is expected to close in the third quarter.

Citizens First State Bank's office in Walnut will operate as an office of Community State Bank after the merger. Following the finalization of the transaction, Community State Bank will operate offices in Galva, Neponset, Kewanee, Franklin and Walnut, Ill.

As per S&P Global Market Intelligence data, CSB Financial Holdings will expand in Bureau, Ill., by one branch to be ranked seventh with a 5.51% share of approximately $1.17 billion in total market deposits.

ProBank Austin was financial adviser to CSB Financial Holdings, while Lane & Waterman LLP served as legal counsel. Hinshaw & Culbertson LLP was legal counsel to Citizens Bancshares.

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