First Defiance Financial has completed the acquisition of Pavilion Bancorp and its subsidiary, the Bank of Lenawee, through the merger of Pavilion into First Defiance.
As a result of the acquisition, First Defiance has increased its deposits by approximately $205 million and its net loans by approximately $237 million as of December 31, 2007.
Following the acquisition, on a pro forma basis using December 31, 2007 data, First Defiance Financial will have $1.85 billion in total assets and $1.4 billion in total deposits.
First Defiance expects the merger to be accretive to earnings in the first 12 months, excluding one-time acquisition related charges, with no repurchase assumptions or revenue synergies assumed. The company expects that one-time costs, including acquisition-related and restructuring charges, will not exceed $3.8 million on a pre-tax basis over the integration period.
As previously announced, First Federal will continue to operate eight Bank of Lenawee offices in Hillsdale and Lenawee Counties, which border northern Ohio, and close the Bank of Lenawee Waldron branch.