Exhibit 1.1
1,449,275 Shares
SB FINANCIAL GROUP, INC.
Common Stock
UNDERWRITING AGREEMENT
February 9, 2018
FIG
PARTNERS, LLC
1475 Peachtree Street NE, Suite #800
Atlanta, GA 30309
As representative of
the Underwriters listed in Schedule A hereto
Ladies and Gentlemen:
SB Financial Group,
Inc., an Ohio corporation (the “Company”), proposes to issue and sell to the several underwriters named in Schedule
A hereto (the “Underwriters”) pursuant to the terms set forth herein (this “Agreement”)
an aggregate of 1,449,275 shares (the “Firm Shares”) of the Company’s common stock, without par value
(the “Common Stock”). The Company also granted to the Underwriters an option to purchase up to an additional
217,391 shares of Common Stock (the “Option Shares”). The Firm Shares and the Option Shares are hereinafter
referred to collectively as the “Shares.” FIG Partners, LLC (“FIG”) has agreed to act as
representative of the several Underwriters (in such capacity, the “Representative”) in connection with the offering
and sale of the Shares. To the extent there are no additional underwriters listed on Schedule A, the term “Representative”
as used herein shall mean you, as Underwriter, and the term “Underwriters” shall mean either the singular or the plural,
as the context requires.
The Company has prepared
and filed with the United States Securities and Exchange Commission (the “Commission”) a registration statement,
on Form S-3 (File No. 333-217206) covering the public offering and sale of certain securities of the Company, including the Shares,
under the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations promulgated
thereunder (the “Securities Act Regulations”), which registration statement has become effective. Such registration
statement, as of any time, means such registration statement as amended by any post-effective amendment thereto at such time, including
the exhibits and any schedules thereto at such time, the documents incorporated or deemed to be incorporated by reference therein
at such time pursuant to Item 12 of Form S-3 under the Securities Act and the documents otherwise deemed to be a part thereof as
of such time pursuant to Rule 430B of the Securities Act Regulations (“Rule 430B”), is referred to herein as
the “Registration Statement”; provided, that the “Registration Statement” without reference to a
time means such registration statement as amended by any post-effective amendment thereto as of the time of the first contract
of sale for the Shares, which time shall be considered the “new effective date” of the Registration Statement with
respect to the Shares within the meaning of Rule 430B(f)(2), including the exhibits and schedules thereto as of such time, the
documents incorporated or deemed to be incorporated by reference therein at such time pursuant to Item 12 of Form S-3 under the
Securities Act and the documents otherwise deemed to be a part thereof as of such time pursuant to Rule 430B. From and after the
date and time of filing of any registration statement increasing the size of the offering pursuant to Rule 462(b) under the Securities
Act Regulations (“Rule 462(b)” and such registration statement, a “Rule 462(b) Registration Statement”),
the term “Registration Statement” shall include the Rule 462(b) Registration Statement. Each preliminary prospectus
supplement and the base prospectus used in connection with the offering of the Shares, including the documents incorporated or
deemed to be incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act immediately prior to the
Applicable Time (as defined below), are collectively referred to herein as a “preliminary prospectus.” Promptly
after execution and delivery of this Agreement, the Company will prepare and file a final prospectus supplement relating to the
Shares in accordance with the provisions of Rule 424(b) of the Securities Act Regulations (“Rule 424(b)”). The
final prospectus supplement and the base prospectus, in the form first furnished to the Underwriters for use in connection with
the offering and sale of the Shares, including the documents incorporated or deemed to be incorporated by reference therein pursuant
to Item 12 of Form S-3 under the Securities Act immediately prior to the Applicable Time (as defined below), are collectively referred
to herein as the “Prospectus.” For purposes of this Agreement, all references to the Registration Statement,
the Rule 462(b) Registration Statement, any preliminary prospectus or the Prospectus or any amendment or supplement thereto shall
be deemed to include the copy filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval system
(or any successor system) (“EDGAR”).
As used in this Agreement:
“Applicable
Time” means 7:30 a.m., New York City time, on February 9, 2018 or such other time as agreed by the Company and the Representative.
“Pricing
Disclosure Package” means each Issuer General Use Free Writing Prospectus and the most recent preliminary prospectus
furnished to the Underwriters for general distribution to investors prior to the Applicable Time, and the pricing information conveyed
orally to investors, and as set forth on Schedule B hereto, all considered together.
“Issuer
Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433 of the Securities
Act Regulations (“Rule 433”), including, without limitation, any “free writing prospectus” (as defined
in Rule 405) relating to the Shares that is (i) required to be filed with the Commission by the Company, (ii) a “road show
that is a written communication” within the meaning of Rule 433(d)(8)(i), whether or not required to be filed with the Commission,
or (iii) exempt from filing with the Commission pursuant to Rule 433(d)(5)(i) because it contains a description of the Shares or
of the offering thereof that does not reflect the final terms, in each case in the form filed or required to be filed with the
Commission or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g).
“Issuer
General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is intended for general distribution
to investors, as evidenced by its being specified in Schedule B hereto.
“Issuer
Limited Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is not an Issuer General Use Free
Writing Prospectus.
All references in this
Agreement to financial statements and schedules and other information which is “contained,” “included”
or “stated” (or other references of like import) in the Registration Statement, any preliminary prospectus or the Prospectus
shall be deemed to include all such financial statements and schedules and other information incorporated or deemed to be incorporated
by reference in the Registration Statement, any preliminary prospectus or the Prospectus, as the case may be, prior to the Applicable
Time; and all references in this Agreement to amendments or supplements to the Registration Statement, any preliminary prospectus
or the Prospectus shall be deemed to include the filing of any document under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and the rules and regulations promulgated thereunder (the “Exchange Act Regulations”)
incorporated or deemed to be incorporated by reference in the Registration Statement, such preliminary prospectus or the Prospectus,
as the case may be, at or after the Applicable Time.
SECTION 1. Representations
and Warranties.
(a) Representations
and Warranties by the Company. The Company represents and warrants to each Underwriter at the date hereof, the Applicable Time,
the Closing Time (as defined below) and any Date of Delivery (as defined below), and agrees with each Underwriter, as follows:
(i) Compliance
of the Registration Statement, the Prospectus and Incorporated Documents. The Company meets the requirements for use of Form
S-3 under the Securities Act. The Registration Statement is a shelf registration statement, and the offer and sale of the Shares
is registered by the Company on such shelf registration statement. Each of the Registration Statement, the Rule 462(b) Registration
Statement and any post-effective amendment thereto has become effective under the Securities Act and the initial effective date
of the Registration Statement is not more than three years before the date of this Agreement. No stop order suspending the effectiveness
of the Registration Statement, any Rule 462(b) Registration Statement or any post-effective amendment thereto has been issued under
the Securities Act, no notice of objection of the Commission to the use of the Registration Statement or any post-effective amendment
thereto pursuant to Rule 401(g)(2) of the Securities Act Regulations (“Rule 401(g)(2)”) has been received by
the Company, no order preventing or suspending the use of any preliminary prospectus or the Prospectus or any amendment or supplement
thereto has been issued and no proceedings for any of those purposes have been instituted or are pending or, to the Company’s
knowledge, contemplated. The Company has complied with each request (if any) from the Commission for additional information.
Each of the
Registration Statement and any post-effective amendment thereto, at the time of its effectiveness and as of each deemed effective
date with respect to the Underwriters pursuant to Rule 430B(f)(2) and any Rule 462(b) Registration Statement, complied in all material
respects with the requirements of the Securities Act and the Securities Act Regulations. Each preliminary prospectus, the Prospectus
and any amendment or supplement thereto, at the time each was filed with the Commission, complied in all material respects with
the requirements of the Securities Act and the Securities Act Regulations and are identical to the electronically transmitted copies
thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.
The documents
incorporated or deemed to be incorporated by reference in the Registration Statement, the Pricing Disclosure Package and the Prospectus,
when they became effective or at the time they were or hereafter are filed with the Commission, complied and will comply in all
material respects with the requirements of the Exchange Act and the Exchange Act Regulations.
(ii) Accurate
Disclosure. Neither the Registration Statement, the Rule 462(b) Registration Statement nor any post-effective amendment thereto,
at its effective time, at the Closing Time or at any Date of Delivery, contained, contains or will contain an untrue statement
of a material fact or omitted, omits or will omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading. At the Applicable Time, neither (A) the Pricing Disclosure Package nor (B) any individual Issuer
Limited Use Free Writing Prospectus, when considered together with the Pricing Disclosure Package, included, includes or will include
an untrue statement of a material fact or omitted, omits or will omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. Neither the Prospectus nor any amendment
or supplement thereto, as of its issue date, at the Closing Time or at any Date of Delivery, included, includes or will include
an untrue statement of a material fact or omitted, omits or will omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The documents incorporated or deemed to
be incorporated by reference in the Registration Statement, the Rule 462(b) Registration Statement, the Pricing Disclosure Package
and the Prospectus, at the time the Registration Statement or Rule 462(b) Registration Statement became effective or when such
incorporated documents were filed with the Commission, as the case may be, when read together with the other information in the
Registration Statement, the Rule 462(b) Registration Statement, the Pricing Disclosure Package or the Prospectus, as the case may
be, did not, does not and will not include an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading. There are no statutes, regulations, documents or
contracts of a character required to be described in the Registration Statement, the Rule 462(b) Registration Statement, the Pricing
Disclosure Package and the Prospectus, or to be filed as an exhibit to the Registration Statement or Rule 462(b) Registration Statement,
which are not described or filed as required. There are no business relationships or related person transactions involving the
Company or any Subsidiary (as defined herein) or any other person required to be described in the Registration Statement, the Rule
462(b) Registration Statement, the Pricing Disclosure Package and the Prospectus that have not been described as required.
The representations
and warranties in this subsection shall not apply to statements in or omissions from the Registration Statement, any Rule 462(b)
Registration Statement or any amendment thereto or the Pricing Disclosure Package or the Prospectus or any amendment or supplement
thereto made in reliance upon and in conformity with written information furnished to the Company by any Underwriter through the
Representative expressly for use therein. For purposes of this Agreement, the only information so furnished shall be the information
in (i) the third sentence under “Commissions and Discounts,” (ii) the first sentence under “Stabilization,”
(iii) the first sentence under “Passive Market Making,” each under the heading “Underwriting,” contained
in the Registration Statement, any Rule 462(b) Registration Statement, the preliminary prospectus contained in the Pricing Disclosure
Package and the Prospectus (collectively, the “Underwriter Information”).
(iii) Issuer
Free Writing Prospectuses. No Issuer Free Writing Prospectus conflicts or will conflict with the information contained in the
Registration Statement, any preliminary prospectus or the Prospectus, including any document incorporated by reference therein,
that has not been superseded or modified.
(iv) Company
Not Ineligible Issuer. (A) At the time of filing the Registration Statement, any Rule 462(b) Registration Statement and any
post-effective amendment thereto, (B) at the earliest time thereafter that the Company or another offering participant made a bona
fide offer (within the meaning of Rule 164(h)(2) of the Securities Act Regulations) of the Shares and (C) at the Applicable
Time, the Company was not and is not an “ineligible issuer,” as defined in Rule 405.
(v) Independent
Accountants. BKD, LLP, the accounting firm that certified the financial statements and supporting schedules of the Company
that are included in the Registration Statement, the Pricing Disclosure Package and the Prospectus, is (i) an independent public
accountant as required by the Securities Act, the Securities Act Regulations, the Exchange Act, the Exchange Act Regulations and
the Public Company Accounting Oversight Board (the “PCAOB”), (ii) a registered public accounting firm, as defined
by the PCAOB, which has not had its registration superseded or revoked and which has not requested that such registration be withdrawn,
and (iii) with respect to the Company, is not and has not been in violation of the auditor independence requirements of the Sarbanes-Oxley
Act of 2002 (the “Sarbanes-Oxley Act”) and the rules and regulations of the Commission.
(vi) Financial
Statements; Non-GAAP Financial Measures. The financial statements of the Company and its Subsidiaries (as defined below) included
in the Registration Statement, the Pricing Disclosure Package and the Prospectus, together with the related schedules and notes,
comply with the requirements of the Securities Act and present fairly the financial position of the Company and its consolidated
Subsidiaries (as defined below). The financial statements of the Company and its consolidated Subsidiaries (as defined below) at
the dates indicated have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”)
applied on a consistent basis throughout the periods involved. The supporting schedules, if any, present fairly in accordance with
GAAP the information required to be stated therein. The selected financial data and the summary financial information included
in the Registration Statement, the Pricing Disclosure Package and the Prospectus present fairly the information shown therein and
have been compiled on a basis consistent with that of the audited financial statements included or incorporated by reference therein.
To the extent applicable, all disclosures contained in the Registration Statement, the Pricing Disclosure Package or the Prospectus,
if any, regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission)
comply with Regulation G under the Exchange Act and Item 10(e) of Regulation S-K under the Securities Act. The interactive data
in eXtensible Business Reporting Language incorporated by reference in the Registration Statement, the Pricing Disclosure Package
and the Prospectus is updated as necessary to comply with the requirements of the Securities Act and the Commission’s rules
and guidelines applicable thereto and present fairly the consolidated financial position, results of operations and changes in
financial position of the Company and its subsidiaries (the “Subsidiaries”) on the basis stated in the Registration
Statement at the respective dates or for the respective periods to which they apply.
(vii) No
Material Adverse Change in Business. Since the respective dates as of which information is given in the Registration Statement,
the Pricing Disclosure Package and the Prospectus, except as otherwise stated therein, (A) there has been no material adverse effect,
or any development that would reasonably be expected to result in a material adverse effect, (i) on the general affairs, condition
(financial or otherwise), business, properties, prospects, management, financial position, shareholders’ equity, assets,
liabilities or results of operations, of the Company and its Subsidiaries considered as one enterprise, whether or not arising
in the ordinary course of business or (ii) in the ability of the Company to perform its obligations under, and to consummate the
transactions contemplated by, this Agreement (each of (i) and (ii) a “Material Adverse Effect”), (B) there has
not been any change in the capital stock, short-term debt or long-term debt of the Company or any of the Subsidiaries, (C) there
have been no transactions entered into by, and no obligations or liabilities, contingent or otherwise, incurred by the Company
or any of the Subsidiaries, whether or not in the ordinary course of business, which are material to the Company and the Subsidiaries,
considered as one enterprise, (D) the Company has not purchased any of its outstanding capital stock and, except for regular quarterly
dividends on the Common Stock in amount per share that are consistent with past practice, there has been no dividend or distribution
of any kind declared, paid or made by the Company on any class of its capital stock or (E) there has been no material loss or interference
with the Company’s business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any
labor dispute or court or governmental action, order or decree, in each case, otherwise than as set forth or contemplated in the
Registration Statement, the Pricing Disclosure Package and the Prospectus.
(viii) Good
Standing of the Company. The Company has been duly organized and is validly existing as a corporation in good standing under
the laws of the State of Ohio and has corporate power and authority to own, lease and operate its properties and to conduct its
business as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus and to enter into and perform
its obligations under this Agreement; and the Company is duly qualified as a foreign corporation to transact business and is in
good standing in each other jurisdiction in which such qualification is required, whether by reason of the ownership or leasing
of property or the conduct of business, except where the failure to so qualify or to be in good standing would not reasonably be
expected to result in a Material Adverse Effect.
(ix) Good
Standing of Subsidiaries. The State Bank and Trust Company (the “Bank”) is a bank chartered under the laws
of the State of Ohio and the charter of the Bank is in full force and effect. Each other Subsidiary has been duly organized and
is validly existing as a corporation or other organization in good standing under the laws of the jurisdiction of its incorporation,
formation or organization, has the requisite corporate or organizational power and authority to own, lease and operate its properties
and to conduct its business as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus and is
duly qualified as a foreign corporation or other business entity to transact business and is in good standing in each jurisdiction
in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business,
except where the failure to so qualify or to be in good standing would not reasonably be expected to result in a Material Adverse
Effect. Except as otherwise disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, all of
the issued and outstanding capital stock of each such Subsidiary has been duly authorized and validly issued, is fully paid and
non-assessable and is owned by the Company, directly or through Subsidiaries, free and clear of any security interest, mortgage,
pledge, lien, encumbrance, claim or equity; none of the outstanding shares of capital stock of any Subsidiary was issued in violation
of the preemptive or similar rights of any securityholder of such Subsidiary arising by operation of law, or under the articles
of incorporation, bylaws or other organizational documents of the Company or any Subsidiary or under any agreement to which the
Company or any Subsidiary is a party. The only Subsidiaries of the Company are those listed on Schedule C hereto. The only
Subsidiaries of the Company are (A) the subsidiaries listed on Exhibit 21 to the Registration Statement (collectively, the “Significant
Subsidiaries”) and (B) certain other subsidiaries which, considered in the aggregate as a single subsidiary, do not constitute
a “significant subsidiary” as defined in Rule 1-02 of Regulation S-X. Except for the Subsidiaries, the Company does
not own beneficially, directly or indirectly, more than five percent (5%) of any class of equity securities or similar interests
in any corporation, business trust, association or similar organization, and is not, directly or indirectly, a partner in any partnership
or party to any joint venture.
(x) Capitalization.
The authorized, issued and outstanding capital stock of the Company is as set forth in the Registration Statement, the Pricing
Disclosure Package and the Prospectus in the column entitled “Actual” under the caption “Capitalization”
(except for subsequent issuances, if any, pursuant to this Agreement, pursuant to reservations, agreements or employee benefit
plans referred to in the Registration Statement, the Pricing Disclosure Package and the Prospectus or pursuant to the exercise
of convertible securities or options referred to in the Registration Statement, the Pricing Disclosure Package and the Prospectus).
The shares of issued and outstanding capital stock of the Company have been duly authorized and validly issued and are fully paid
and non-assessable; none of the outstanding shares of capital stock of the Company was issued in violation of the preemptive rights,
rights of first refusal or other similar rights of any securityholder of the Company arising by operation of law, or under the
articles of incorporation, bylaws or other organizational documents of the Company or any Subsidiary or under any agreement to
which the Company or any Subsidiary is a party.
(xi) Company
Equity Awards. With respect to any stock options, restricted stock or other equity awards (the “Equity Awards”)
granted pursuant to any compensation plan of the Company or its Subsidiaries providing for the issuance of Equity Awards (the “Company
Plans”), (A) each grant of an Equity Award was duly authorized no later than the date on which the grant of such Equity
Award was by its terms to be effective by all necessary corporate action, and (B) each such grant was made in accordance with the
terms of the Company Plans and all other applicable laws and regulatory rules or requirements.
(xii) Authorization
of Agreement. The Company has full right, power and authority to execute and deliver this Agreement and to perform its obligations
hereunder; and all action required to be taken for the due and proper authorization, execution and delivery by it of this Agreement
and the consummation by it of the transactions contemplated hereby has been duly and validly taken. This Agreement has been duly
authorized, executed and delivered by the Company.
(xiii) Securities
Offerings. All offers and sales of the Company’s Common Stock, Series A Preferred Stock, depositary shares and debt or
other securities prior to the date hereof were made in compliance with or were the subject of an available exemption from the Securities
Act and the Securities Act Regulations and all other applicable state and federal laws or regulations, or any actions under the
Securities Act and the Securities Act Regulations or any state or federal laws or regulations in respect of any such offers or
sales are effectively barred by effective waivers or statutes of limitation.
(xiv) Authorization
and Description of Shares. The Shares to be purchased by the Underwriters from the Company have been duly authorized for issuance
and sale to the Underwriters pursuant to this Agreement and, when issued and delivered by the Company pursuant to this Agreement
against payment of the consideration set forth herein, will be validly issued, fully paid and non-assessable; the Common Stock
conforms to all statements relating thereto contained in the Registration Statement, the Pricing Disclosure Package and the Prospectus
and such statements conform to the rights set forth in the instruments defining the same; no holder of the Shares will be subject
to personal liability for the debts of the Company by reason of being such a holder; and the issuance of the Shares is not subject
to the preemptive rights, rights of first refusal or other similar rights of any securityholder of the Company. There are no authorized
or outstanding options, warrants, preemptive rights, rights of first refusal or other rights to purchase, or equity or debt securities
convertible into or exchangeable or exercisable for, any capital stock of the Company or any of the Subsidiaries other than those
described in the Registration Statement, the Pricing Disclosure Package and the Prospectus. The descriptions of the Company’s
stock option, stock bonus and other stock plans or arrangements, and the options or other rights granted thereunder, set forth
in the Registration Statement, the Pricing Disclosure Package and the Prospectus accurately and fairly present in all material
respects the information required to be shown with respect to such plans, arrangements, options and rights.
(xv) Registration
Rights. There are no contracts, agreements or understandings between the Company any person granting such person registration
rights or other similar rights to have any securities registered for resale pursuant to the Registration Statement or otherwise
registered for resale or sold by the Company under the Securities Act pursuant to this Agreement other than any rights that have
been disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus and have been waived.
(xvi) Summaries
of Legal Matters. The statements set forth in the Registration Statement, the Pricing Disclosure Package and the Prospectus
under the caption “Description of Common Stock” and under the caption “Supervision and Regulation” in the
Company’s Annual Report on Form 10-K for the year ended December 31, 2016, insofar as they purport to describe the provisions
of the laws and regulations or documents referred to therein, are accurate, complete and fair in all material respects.
(xvii) Absence
of Defaults and Conflicts. The Company is not in violation of its Amended Articles of Incorporation, as amended, (the “Charter”),
or Amended and Restated Regulations, as amended (the “Bylaws”); none of the Subsidiaries is in violation of
its charter, bylaws or other organizational documents and neither the Company nor any of its Subsidiaries is in default in the
performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, deed
of trust, loan or credit agreement, note, lease or other agreement or instrument to which the Company or any of its Subsidiaries
is a party or by which it or any of them may be bound, or to which any of the property or assets of the Company or any Subsidiary
is subject (collectively, “Agreements and Instruments”), or in violation of any law or statute or any judgment,
order, rule or regulation of any court or arbitrator or governmental or regulatory authority, except in each case for such violations
or defaults that would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect; and the
execution, delivery and performance of this Agreement and the consummation of the transactions contemplated herein and therein,
and in the Registration Statement (including the issuance and sale of the Shares and the use of the proceeds from the sale of the
Shares as described in the Prospectus under the caption “Use of Proceeds”) and compliance by the Company with its obligations
hereunder have been duly authorized by all necessary corporate action and do not and will not, whether with or without the giving
of notice or passage of time or both, conflict with or constitute a breach of, or default or Repayment Event (as defined below)
under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or
any Subsidiary pursuant to, the Agreements and Instruments (except for such conflicts, breaches or defaults or liens, charges or
encumbrances that would not, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect); nor will
such action result in any violation of the provisions of the Charter or Bylaws of the Company or the charter, bylaws or other organizational
document of any Subsidiary; nor will such action result in any violation of any applicable law, statute, rule, regulation, judgment,
order, writ or decree of any government, government instrumentality or court, domestic or foreign, having jurisdiction over the
Company or any Subsidiary or any of their assets, properties or operations (except for such violations that would not, singly or
in the aggregate, reasonably be expected to result in a Material Adverse Effect). As used herein, a “Repayment Event”
means any event or condition which gives the holder of any note, debenture or other evidence of indebtedness (or any person acting
on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness
by the Company or any Subsidiary.
(xviii) Nasdaq
Compliance. The Company is in compliance in all material respects with the requirements of The Nasdaq Capital Market (“Nasdaq”)
for continued listing of the Common Stock thereon. The Company has taken no action designed to, or likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act or the listing of the Common Stock on Nasdaq, nor has the
Company received any notification that the Commission or Nasdaq is contemplating terminating such registration or listing. The
transactions contemplated by this Agreement will not contravene the rules or regulations of Nasdaq.
(xix) Absence
of Labor Dispute. No material labor dispute with the employees of the Company or any Subsidiary exists or, to the knowledge
of the Company, is imminent. The Company is not aware of any existing or imminent labor disturbance by the employees of any of
its or any Subsidiary’s principal suppliers, manufacturers, customers or contractors, which, in either case, would, singly
or in the aggregate, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any of the Significant
Subsidiaries is engaged in any unfair labor practice; except for matters which would not, individually or in the aggregate, have
a Material Adverse Effect, (A) there is (1) no unfair labor practice complaint pending or, to the Company’s knowledge, threatened
against the Company or any of the Significant Subsidiaries before the National Labor Relations Board or any similar domestic or
foreign body, and no grievance or arbitration proceeding arising out of or under collective bargaining agreements is pending or,
to the Company’s knowledge, threatened, (2) no strike, labor dispute, slowdown or stoppage pending or, to the Company’s
knowledge, threatened against the Company or any of the Significant Subsidiaries and (3) no union representation dispute currently
existing concerning the employees of the Company or any of the Significant Subsidiaries, (B) to the Company’s knowledge,
no union organizing activities are currently taking place concerning the employees of the Company or any of the Significant Subsidiaries
and (C) there has been no violation of any federal, state, local or foreign law relating to discrimination in the hiring, promotion
or pay of employees, any applicable wage or hour laws or any provision of the Employee Retirement Income Security Act of 1974,
as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”) or any similar domestic
or foreign law or the rules and regulations promulgated thereunder concerning the employees of the Company or any of the Significant
Subsidiaries.
(xx) Absence
of Proceedings. There is no action, suit, proceeding, inquiry or investigation before or brought by any court or governmental
agency or body, domestic or foreign, now pending, or, to the knowledge of the Company, threatened, against or affecting the Company
or any Subsidiary, which is required to be disclosed in the Registration Statement (other than as disclosed therein), or which,
if determined adversely to the Company or any Subsidiary, individually or in the aggregate, would result in a Material Adverse
Effect, or which would reasonably be expected to materially and adversely affect the properties or assets thereof, nor to the Company’s
knowledge, is there any basis for any such action, suit, inquiry, proceeding or investigation; the aggregate of all pending legal
or governmental proceedings to which the Company or any Subsidiary is a party or of which any of their respective property or assets
is the subject which are not described in the Registration Statement, including ordinary routine litigation incidental to the business,
if determined adversely to the Company or any Subsidiary, individually or in the aggregate, would not reasonably be expected to
result in a Material Adverse Effect.
(xxi) Bank
Holding Company Act. The Company has been duly registered as, and meets in all material respects the applicable requirements
for qualification as, a bank holding company and has elected to be treated as a financial holding company under the applicable
provisions of the Bank Holding Company Act of 1956, as amended. The activities of the Subsidiaries are permitted of subsidiaries
of a financial holding company under applicable law and the rules and regulations of the Federal Reserve set forth in Title 12
of the Code of Federal Regulations.
(xxii) Compliance
with Bank Regulatory Authorities. The Company and each of its Subsidiaries is in compliance in all material respects with all
applicable laws, rules and regulations (including, without limitation, all applicable regulations and orders) of, or agreements
with, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Ohio Department
of Commerce Division of Financial Institutions, as applicable (collectively, the “Bank Regulatory Authorities”),
the Equal Credit Opportunity Act, the Fair Housing Act, the Truth in Lending Act, the Community Reinvestment Act (the “CRA”),
the Home Mortgage Disclosure Act, the Bank Secrecy Act and Title III of the USA Patriot Act, to the extent such laws or regulations
apply to the Company or the Bank, as applicable. The Company and the Bank have no knowledge of any facts and circumstances, and
has no reason to believe that any facts or circumstances exist, that would reasonably be expected to cause the Bank (A) to be deemed
not to be in satisfactory compliance with the CRA and the regulations promulgated thereunder or to be assigned a CRA rating by
federal or state banking regulators of lower than “satisfactory” (notwithstanding that the most recent such rating
assigned to the Bank was “needs to improve”) or (B) to be deemed to be operating in violation, in any material respect,
of the Bank Secrecy Act of 1970 (or otherwise known as the “Currency and Foreign Transactions Reporting Act”),
the USA Patriot Act or any order issued with respect to the Anti-Money Laundering Laws (as defined below). As of December 31, 2017,
the Bank met or exceeded the standards necessary to be considered “well capitalized” under the FDIC’s regulatory
framework for prompt corrective action. The Bank is the only depository institution subsidiary of the Company and the Bank is a
member in good standing of the Federal Home Loan Bank System. The activities of the Bank are permitted under the laws and regulations
of the State of Ohio. Since December 31, 2012, the Company, the Bank and each of its subsidiaries have filed all material reports,
registrations and statements, together with any required amendments thereto, that it was required to file with the Federal Reserve,
the FDIC and any other applicable federal or state banking authorities. All such reports and statements filed with any such regulatory
body or authority are collectively referred to herein as the “Company Reports.” As of their respective dates,
the Company Reports complied as to form in all material respects with all the rules and regulations promulgated by the Federal
Reserve and any other applicable federal or state banking authorities, as the case may be. Except as disclosed in the Registration
Statement, the Pricing Disclosure Package and the Prospectus, none of the Company, the Bank or any of their respective subsidiaries
is a party or subject to any formal agreement, memorandum of understanding, consent decree, directive, cease-and-desist order,
order of prohibition or suspension, written commitment, supervisory agreement or other written statement as described under 12
U.S.C. 1818(u) with, or order issued by, or has adopted any board resolutions at the request of, the Federal Reserve, the FDIC
or any other bank regulatory authority that restricts materially the conduct of its business, or in any manner relates to its capital
adequacy, its credit policies or its management, nor have any of them been advised by any Bank Regulatory Authority that it is
contemplating issuing or requesting (or is considering the appropriateness of issuing or requesting) any such order, decree, agreement,
memorandum of understanding, extraordinary supervisory letter, commitment letter or similar submission, or any such board resolutions
or that imposes any restrictions or requirements not generally applicable to bank holding companies or commercial banks. There
is no unresolved violation, criticism or exception by any Bank Regulatory Authority with respect to any examination of the Company,
the Bank or any of the Company’s other Subsidiaries, which would reasonably be expected to result in a Material Adverse Effect.
(xxiii) Accuracy
of Exhibits. There are no contracts or documents which are required to be described in the Registration Statement, the Pricing
Disclosure Package, the Prospectus or the documents incorporated by reference therein or to be filed as exhibits thereto which
have not been so described and filed as required.
(xxiv) Absence
of Further Requirements. No filing with, or authorization, approval, consent, license, order, registration, qualification or
decree of, any court or governmental agency or body is necessary or required for the performance by the Company of its obligations
under this Agreement in connection with the offering, issuance or sale of the Shares or the consummation of the transactions contemplated
in this Agreement prior to the Closing Time, except such as have been already obtained or as may be required under the Securities
Act, the Securities Act Regulations, the rules of Nasdaq, the securities laws of any state or non-U.S. jurisdiction or the rules
of the Financial Industry Regulatory Authority, Inc. (“FINRA”). All of the information provided to the Underwriters
or to counsel for the Underwriters by the Company, its counsel, its officers and directors and the holders of any securities (debt
or equity) or options to acquire any securities of the Company in connection with the offering of the Shares is true, complete,
correct and compliant with FINRA’s rules, and any letters, filings or other supplemental information provided to FINRA pursuant
to FINRA Rules or National Association of Securities Dealers Conduct Rules are true, complete and correct.
(xxv) Possession
of Licenses and Permits. The Company and its Subsidiaries possess such permits, licenses, approvals, registrations, memberships,
consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate federal,
state, local or foreign regulatory agencies or bodies necessary to conduct the business now operated by them; the Company and its
Subsidiaries are in compliance with the terms and conditions of all such Governmental Licenses, except where the failure to so
comply would not, singly or in the aggregate, reasonably be expected to have a Material Adverse Effect and no event has occurred
that allows, or after notice or lapse of time would reasonably be expected to allow, revocation or termination of any such Governmental
License or result in any other material impairment of the rights of any such Governmental License; all of the Governmental Licenses
are valid and in full force and effect; and neither the Company nor any of its Subsidiaries has received any notice of proceedings
relating to the revocation or modification of any such Governmental Licenses. Neither the Company nor any of its Subsidiaries has
failed to file with applicable regulatory authorities any material statement, report, information or form required by any applicable
law, regulation or order, all such filings were in material compliance with applicable laws when filed and no material deficiencies
have been asserted by any regulatory commission, agency or authority with respect to any such filings or submissions.
(xxvi) Title
to Property. The Company and its Subsidiaries have good and marketable title in fee simple to all real property owned by the
Company and its Subsidiaries and good title to all other properties owned by them, in each case, free and clear of all mortgages,
pledges, liens, security interests, claims, restrictions or encumbrances of any kind except such as (A) are described in the Registration
Statement, the Pricing Disclosure Package and the Prospectus or (B) do not materially affect the value of such property and do
not interfere with the use made and proposed to be made of such property by the Company or any Subsidiary. All of the leases and
subleases under which the Company or any of its Subsidiaries holds properties described in the Registration Statement, the Pricing
Disclosure Package and the Prospectus, are in full force and effect and are held under valid, subsisting and enforceable leases,
and neither the Company nor any Subsidiary has any notice of any material claim of any sort that has been asserted by anyone adverse
to the rights of the Company or any Subsidiary under any of the leases or subleases mentioned above, or affecting or questioning
the rights of the Company or such Subsidiary to the continued possession of the leased or subleased premises under any such lease
or sublease.
(xxvii) Possession
of Intellectual Property. The Company and its Subsidiaries own or possess, or can acquire on reasonable terms, adequate patents,
patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary
or confidential information, systems or procedures and excluding generally commercially available “off the shelf” software
programs licensed pursuant to shrink wrap or “click and accept” licenses), systems, technology, trademarks, service
marks, trade names or other intellectual property (collectively, “Intellectual Property”) necessary to carry
on the business now operated by them, and neither the Company nor any of its Subsidiaries has received any notice or is otherwise
aware of any infringement of or conflict with asserted rights of others with respect to any Intellectual Property or of any facts
or circumstances which would render any Intellectual Property invalid or inadequate to protect the interest of the Company or any
of its Subsidiaries therein.
(xxviii) Environmental
Laws. Except as described in the Registration Statement and except as would not, singly or in the aggregate, reasonably be
expected to result in a Material Adverse Effect, (A) neither the Company nor any of its Subsidiaries is in violation of any federal,
state, local or foreign statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial or administrative
interpretation thereof, including any judicial or administrative order, consent, decree or judgment, relating to pollution or protection
of human health, the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata) or wildlife, including, without limitation, laws and regulations relating to the release or threatened release of chemicals,
pollutants, contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum products, asbestos-containing
materials or mold (collectively, “Hazardous Materials”) or to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”),
(B) the Company and its Subsidiaries have all permits, authorizations and approvals required under any applicable Environmental
Laws and are each in compliance with their requirements, (C) there are no pending or threatened administrative, regulatory or judicial
actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation, investigation or proceedings relating
to any Environmental Law against the Company or any of its Subsidiaries and (D) there are no events or circumstances that would
result in forming the basis of an order for clean-up or remediation, or an action, suit or proceeding by any private party or governmental
body or agency, against or affecting the Company or any of its Subsidiaries relating to Hazardous Materials or any Environmental
Laws.
(xxix) ERISA.
Each employee benefit plan, within the meaning of Section 3(3) of ERISA, that is maintained, administered or contributed to by
the Company or any Subsidiary or any member of the Company’s “control group” (within the meaning of Section
414 of the Internal Revenue Code of 1986, as amended (the “Code”) for employees
or former employees of the Company and its affiliates (“Plan”) has been maintained in material compliance with
its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited to ERISA and
the Code. No “prohibited transaction,” within the meaning of Section 406 of ERISA or Section 4975 of the Code has occurred
with respect to any such Plan excluding transactions effected pursuant to a statutory or administrative exemption. No “reportable
event” (as defined under ERISA) has occurred or is reasonably expected to occur with respect to any “employee benefit
plan” established or maintained by the Company, the Subsidiaries or any of their ERISA Affiliates. No “employee benefit
plan” (as defined under ERISA) established or maintained by the Company, the Subsidiaries or any of their ERISA Affiliates,
if such employee benefit plan were terminated, would have any “amount of unfunded benefit liabilities” (as defined
under ERISA). Neither the Company, the Subsidiaries nor any of their ERISA Affiliates has incurred or reasonably expects to incur
any liability under (A) Title IV of ERISA with respect to termination of, or withdrawal from, any “employee benefit
plan,” or (B) Sections 412, 4971, 4975 or 4980B of the Code. Each employee benefit plan established or maintained
by the Company, the Subsidiaries or any of their ERISA Affiliates that is intended to be qualified under Section 401(a) of
the Code is so qualified and nothing has occurred, whether by action or failure to act, which would reasonably be expected to cause
the loss of such qualification. With respect to each Plan subject to Title IV of ERISA, the minimum funding standard of Section
302 of ERISA or Section 412 of the Code, as applicable, has been satisfied (without taking into account any waiver thereof or extension
of any amortization period) and is reasonably expected to be satisfied in the future (without taking into account any waiver thereof
or extension of any amortization period) and the fair market value of the assets under each Plan exceeds the present value of all
benefits accrued under such Plan (determined based on those assumptions used to fund such Plan). There is no pending audit or investigation
by the Internal Revenue Service, the U.S. Department of Labor, the Pension Benefit Guaranty Corporation or any other governmental
agency or any foreign agency.
(xxx) Internal
Control Over Financial Reporting. The Company and each of its Subsidiaries maintain a system of internal control over financial
reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act Regulations) that complies in all material respects with
the requirements of the Exchange Act and has been designed by the Company’s principal executive officer and principal financial
officer and is sufficient to provide reasonable assurance that (A) transactions are executed in accordance with management’s
general or specific authorizations; (B) transactions are recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain asset accountability; (C) access to assets is permitted only in accordance with management’s
general or specific authorization; (D) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences; and (E) the interactive data in eXtensible Business
Reporting Language included or incorporated by reference in the Registration Statement is accurate and fairly presents the information
called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable
thereto. Except as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, since the end of
the Company’s most recent audited fiscal year, (i) there has been no material weakness in the Company’s internal control
over financial reporting (whether or not remediated), (ii) there has been no change in the Company’s internal control over
financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control
over financial reporting and (iii) the Company has not been advised of (a) any significant deficiencies in the design or operation
of internal controls that could adversely affect the ability of the Company or any Subsidiary to record, process, summarize and
report financial data, or any material weaknesses in internal controls, or (b) any fraud, whether or not material, that involves
management or other employees who have a significant role in the internal controls of the Company and each of the Subsidiaries.
(xxxi) Disclosure
Controls and Procedures. The Company and its Subsidiaries employ disclosure controls and procedures (as such term is defined
in Rule 13a-15 of the Exchange Act Regulations), which (A) are designed to ensure that information required to be disclosed by
the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in the Commission’s rules and forms and that material information relating to the Company and
its Subsidiaries is made known to the Company’s principal executive officer and principal financial officer by others within
the Company and its Subsidiaries to allow timely decisions regarding disclosure, (B) have been evaluated by management of the Company
for effectiveness as of the end of the Company’s most recent fiscal quarter, and (C) were then effective in all material
respects to perform the functions for which they were established. Based on the evaluation of the Company’s and each Subsidiary’s
disclosure controls and procedures described above, the Company is not aware of (1) any significant deficiency in the design or
operation of internal controls which could adversely affect the Company’s or its Subsidiaries’ ability to record, process,
summarize and report financial data or any material weaknesses in internal controls or (2) any fraud, whether or not material,
that involves management or other employees who have a significant role in the Company’s or its Subsidiaries’ internal
controls. Since the most recent evaluation of the Company’s disclosure controls and procedures described above, there have
been no changes in internal controls or in other factors that could significantly affect internal controls.
(xxxii) Compliance
with the Sarbanes-Oxley Act. There is and has been no failure on the part of the Company or any of the Company’s directors
or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act and the rules and regulations
promulgated in connection therewith, including Section 402 related to loans and Sections 302 and 906 related to certifications.
(xxxiii) Pending
Procedures and Examinations. The Registration Statement is not the subject of a pending proceeding or examination under Section
8(d) or 8(e) of the Securities Act, and the Company is not the subject of a pending proceeding under Section 8A of the Securities
Act in connection with the offering of the Shares.
(xxxiv) Payment
of Taxes. All United States federal income tax returns of the Company and the Subsidiaries required by law to be filed have
been timely filed and all taxes shown by such returns or otherwise assessed, which are due and payable, have been paid, except
assessments against which have been or will be promptly contested in good faith and as to which adequate reserves have been provided
in the Company’s financials in accordance with GAAP. The Company and the Subsidiaries have filed all other tax returns that
are required to have been filed by them pursuant to applicable foreign, state, local or other law, except insofar as the failure
to file such returns, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect,
and have paid all taxes due pursuant to such returns or pursuant to any assessment received by the Company or any Subsidiary except
for such taxes, if any, as are being contested in good faith and as to which adequate reserves have been provided. The charges,
accruals and reserves on the books of the Company and the Subsidiaries in respect of any income and corporation tax liability for
any years not finally determined are adequate to meet any assessments or re-assessments for additional income tax for any years
not finally determined. Except as otherwise disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus,
there is no tax deficiency that has been or would reasonably be expected to be asserted against the Company or any of its Subsidiaries
or any of their respective properties or assets.
(xxxv) Insurance.
The Company and each Subsidiary is insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which they are engaged including, but not limited to, policies
covering real and personal property owned or leased by the Company and each Subsidiary against theft, damage, destruction, acts
of vandalism and earthquakes; neither the Company nor any of its Subsidiaries has been refused any insurance coverage sought or
applied for; and the Company has no reason to believe that it or any Subsidiary will not be able to renew their existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business at a cost that would not reasonably be expected to have a Material Adverse Effect. All such insurance is fully in
force as of the date hereof.
(xxxvi) Investment
Company Act. The Company is not, and upon the issuance and sale of the Shares as herein contemplated and the application of
the net proceeds therefrom as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus will not
be, an “investment company” or an entity “controlled” by an “investment company” as such terms
are defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”).
(xxxvii) Absence
of Manipulation. Neither the Company nor any of the Subsidiaries, nor any affiliates of the Company or its Subsidiaries, has
taken, directly, or indirectly, and neither the Company nor any of the Subsidiaries, nor any affiliates of the Company or its Subsidiaries,
will take, directly or indirectly, any action designed to cause or result in, or which constitutes or might reasonably be expected
to constitute, the stabilization or manipulation of the price of any security of the Company or any “reference security”
(as defined in Rule 100 of Regulation M under the Exchange Act) to facilitate the sale or resale of the Shares or otherwise, and
has taken no action which would directly or indirectly violate Regulation M under the Exchange Act.
(xxxviii) Foreign
Corrupt Practices Act. None of the Company, any of its Subsidiaries or, to the knowledge of the Company, any director, officer,
agent or employee of the Company or any of its Subsidiaries has (A) used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political activity; (B) made or taken an act in furtherance of an offer, promise
or authorization of any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate
funds; (C) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”),
or any applicable non-U.S. anti-bribery statute or regulation; or (D) made, offered, agreed, requested or taken an act in furtherance
of any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment. To
the knowledge of the Company, its affiliates have conducted their businesses in compliance with the FCPA and have instituted and
maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance
therewith.
(xxxix) Anti-Money
Laundering Laws. The operations of the Company and its Subsidiaries and, to the knowledge of the Company, their respective
affiliates, are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements
of the Currency and Foreign Transactions Reporting Act of 1970, the money laundering statutes of all applicable jurisdictions and
the rules and regulations thereunder issued, administered or enforced by any governmental agency or body (collectively, the “Anti-Money
Laundering Laws”); and no action, suit or proceeding by or before any court, governmental agency or body involving the
Company or any of its Subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company,
threatened. The Company and its Subsidiaries and, to the knowledge of the Company, their respective affiliates, have conducted
their businesses in compliance with applicable anti-corruption laws and have instituted and maintain and will continue to maintain
policies and procedures designed to promote and achieve compliance with such laws.
(xl) OFAC.
None of the Company, any of the Subsidiaries or any officer or director of either the Company or any Subsidiary, nor, to the knowledge
of the Company, after due inquiry, any agent, employee, affiliate or person acting on behalf of the Company or any of the Subsidiaries
is or has been (A) engaged in any services (including financial services), transfers of goods, software, or technology, or any
other business activity in or related to any country or territory that is, or whose government is, the subject of Sanctions (as
defined below), (“Sanctioned Countries”), (ii) the government of any Sanctioned Country, (iii) any person, entity
or organization located in, resident in, formed under the laws of, or owned or controlled by the government of, any Sanctioned
Country, or (iv) any person, entity or organization made subject of any sanctions administered or enforced by the United States
Government, including, without limitation, the list of Specially Designated Nationals (“SDN List”) of the Office
of Foreign Assets Control of the U.S. Treasury Department (“OFAC”), or by the United Nations Security Council,
the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”)
and the Company will not directly or indirectly use the proceeds of this offering, or lend, contribute or otherwise make available
such proceeds to any Subsidiary, or any joint venture partner or other person or entity, for the purpose of financing the activities
of or business with any person, or in any country or territory, that currently is the subject to any U.S. sanctions administered
by OFAC or in any other manner that will result in a violation by any person (including any person participating in the transaction
whether as underwriter, advisor, investor or otherwise) of U.S. sanctions administered by OFAC; (B) engaged in any transfers of
goods, technologies or services (including financial services) that may assist the governments of Sanctioned Countries or facilitate
money laundering or other activities proscribed by United States laws, rules or regulations; (C) is a person, entity or organization
currently the subject of any Sanctions; or (D) located, organized or resident in any Sanctioned Country.
(xli) Relationship.
No relationship, direct or indirect, exists between or among the Company or any of its Subsidiaries, on the one hand, and the directors,
officers, shareholders, customers or suppliers of the Company or any of its Subsidiaries, on the other, that is required by the
Securities Act or Securities Act Regulations to be described in the Registration Statement and/or the Prospectus and that is not
so described.
(xlii) Lending
Relationship. Except as disclosed in the Registration Statement, the Pricing Disclosure Package and the Prospectus, the Company
(A) does not have any material lending or other relationship with any bank or lending affiliate of any Underwriter and (B) does
not intend to use any of the proceeds from the sale of the Shares to repay any outstanding debt owed to any affiliate of any Underwriter.
(xliii) No
Restrictions on Subsidiaries. Other than as limited by federal and state banking laws and regulations applicable to depository
institutions and except in each case as otherwise disclosed in the Registration Statement, the Pricing Disclosure Package and the
Prospectus, no Subsidiary of the Company is currently prohibited, directly or indirectly, under any agreement or other instrument
to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution on such Subsidiary’s
capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any
of such Subsidiary’s properties or assets to the Company or any other Subsidiary of the Company.
(xliv) Statistical
and Market-Related Data. The statistical and market related data contained in the Registration Statement and Prospectus are
based on or derived from sources which the Company believes are reliable and accurate, and the Company has obtained the written
consent to the use of such data from such sources to the extent required.
(xlv)
Distribution of Offering Material By the Company. The Company has not distributed and will not distribute, prior to the
later of the Closing Time and the completion of the Underwriters’ distribution of the Shares, any offering material in connection
with the offering and sale of the Shares other than the Registration Statement, the preliminary prospectus contained in the Pricing
Disclosure Package, the Prospectus, any Issuer Free Writing Prospectus reviewed and consented to by the Representative and included
in Schedule B hereto or any electronic road show or other written communications reviewed and consented to by the Representative
and listed on Schedule B hereto (each a, “Company Additional Written Communication”). Each such Company Additional
Written Communication, when taken together with the Pricing Disclosure Package, did not, and at the Closing Time will not, contain
any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The preceding sentence does not apply to statements
in or omissions from the Company Additional Written Communication based upon and in conformity with written information furnished
to the Company by any Underwriter through the Representative specifically for use therein, it being understood and agreed that
the only such information furnished by any Underwriter through the Representative consists of the Underwriter Information.
(xlvi) Forward-Looking
Statements. Each financial or operational projection or other “forward-looking statement” (as defined by Section
27A of the Securities Act or Section 21E of the Exchange Act) contained in the Registration Statement, the Pricing Disclosure Package
and the Prospectus (A) was so included by the Company in good faith and with reasonable basis after due consideration by the
Company of the underlying assumptions, estimates and other applicable facts and circumstances, and (B) is accompanied by meaningful
cautionary statements identifying those factors that could cause actual results to differ materially from those in such forward-looking
statement. No such statement was made with the knowledge of an executive officer or director of the Company that it was false or
misleading.
(xlvii) Lock-Up
Agreements. Each of the Company’s officers, as defined by Rule 16a-1(f) of the Exchange Act Regulations, and directors,
in each case as listed on Schedule D hereto, has executed and delivered lock-up agreements as contemplated in SECTION 6(k)
hereof.
(xlviii) Fees.
Other than as contemplated by this Agreement, there is no broker, finder or other party that is entitled to receive from the Company
or any Subsidiary any brokerage or finder’s fee or any other fee, commission or payment as a result of the transactions contemplated
by this Agreement.
(xlix) Deposit
Insurance. The deposit accounts of the Bank are insured by the FDIC up to applicable legal limits, the Bank has paid all premiums
and assessments required by the FDIC and the regulations thereunder, and no proceeding for the termination or revocation of such
insurance is pending or, to the knowledge of the Company, threatened.
(l) Derivative
Instruments. Any and all material swaps, caps, floors, futures, forward contracts, option agreements (other than options issued
under the Company’s shareholder-approved benefit plans) and other derivative financial instruments, contracts or arrangements,
whether entered into for the account of the Company or one of its Subsidiaries or for the account of a customer of the Company
or one of its Subsidiaries, were entered into in the ordinary course of business and in accordance with applicable laws, rules,
regulations and policies of all applicable regulatory agencies and with counterparties believed by the Company to be financially
responsible. The Company and each of its Subsidiaries have duly performed in all material respects all of their obligations thereunder
to the extent that such obligations to perform have accrued, and there are no breaches, violations or defaults or allegations or
assertions of such by any party thereunder except as would not, singly or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
(li) Termination
of Contracts. Except as would not have a Material Adverse Effect, neither the Company nor any Significant Subsidiary has sent
or received any communication regarding termination of, or intent not to renew, any of the contracts or agreements referred to
or described in the Pricing Disclosure Package and Final Prospectus, or referred to or described in, or filed as an exhibit to,
the Pricing Disclosure Package and Final Prospectus, and no such termination or non-renewal has been threatened by the Company
or any Significant Subsidiary or, to the Company’s knowledge, any other party to any such contract or agreement; and there
are no contracts or documents of the Company or any of the Significant Subsidiaries that are required to be described in the Pricing
Disclosure Package and the Final Prospectus or to be filed as exhibits thereto by the Securities Act or by the rules and regulations
of the Commission thereunder that have not been so described and filed.
(lii) Off-Balance
Sheet Transactions. There is no transaction, arrangement or other relationship between the Company or any of its Subsidiaries
and an unconsolidated or other off-balance sheet entity which is required to be disclosed in the Registration Statement, the Pricing
Disclosure Package and the Prospectus (other than as disclosed therein).
(liii) Margin
Rules. The application of the proceeds received by the Company from the issuance, sale and delivery of the Shares as described
in the Registration Statement, the Pricing Disclosure Package and the Prospectus will not violate Regulation T, U or X of the Federal
Reserve or any other regulation of the Federal Reserve.
(b) The
Bank represents and warrants to each Underwriter at the date hereof, the Applicable Time, the Closing Time and any Date of Delivery,
and agrees with each Underwriter, as follows:
(i) The Bank
has been duly chartered and is validly existing as an Ohio state-chartered bank in good standing under the laws of Ohio, and has
been duly qualified as a foreign bank for the transaction of business and is in good standing under the laws of each other jurisdiction
in which it owns or leases properties or conducts any business so as to require such qualification or is subject to no material
liability or disability by reason of the failure to be so qualified in any such other jurisdiction;
(ii) Neither
the Bank nor any of its subsidiaries is (A) in violation of its articles or certificate of incorporation, bylaws or other organizational
or governing documents, (B) in default in the performance or observance of any obligation, agreement, covenant or condition contained
in any contract, indenture, mortgage, deed of trust, loan agreement, note, lease or other agreement or instrument to which the
Bank or any of its subsidiaries is a party or by which any of them is bound or to which any of the property or assets of the Bank
or any of its subsidiaries is subject (collectively, the “Bank Instruments”) or (C) in violation of any statute,
law, rule, regulation, order, decree of any court or governmental agency or body having jurisdiction over the Bank or any of its
subsidiaries; and
(iii) The execution,
delivery and performance of this Agreement by the Bank, compliance by the Bank with all of the provisions of this Agreement and
the consummation of the transactions herein contemplated do not and will not contravene, conflict with, or result in a breach or
violation of any of the terms or provisions of, or constitute a default under, any Bank Instrument, nor does or will any such action
contravene, conflict with or result in a breach or violation of any of the terms or provisions of the articles of incorporation
or association or bylaws of the Bank or any statute, order, law, rule, regulation or decree of any court or governmental agency
or body having jurisdiction over the Bank or any of its subsidiaries or any of their properties.
(c) Officer’s
Certificates. Any certificate signed by any officer of the Company or any of its Subsidiaries delivered to the Representative
or to counsel for the Underwriters shall be deemed a representation and warranty by the Company to each Underwriter as to the matters
covered thereby.
SECTION 2. Sale
and Delivery to Underwriters; Closing.
(a) Firm
Shares. On the basis of the representations and warranties herein contained and subject to the terms and conditions herein
set forth, the Company agrees to sell to each Underwriter, severally and not jointly, and each Underwriter, severally and not jointly,
agrees to purchase from the Company, at the price per share set forth in Schedule A, the number of Firm Shares set forth
in Schedule A opposite the name of such Underwriter, plus any additional number of Firm Shares which such Underwriter may
become obligated to purchase pursuant to the provisions of SECTION 11 hereof, subject, in each case, to such adjustments among
the Underwriters as the Representative in its sole discretion shall make to eliminate any sales or purchases of fractional shares.
(b) Option
Shares. In addition, on the basis of the representations and warranties herein contained and subject to the terms and conditions
herein set forth, the Company grants an option to the Underwriters, severally and not jointly, to purchase up to an additional
217,391 shares of Common Stock at the price per share set forth in Schedule A. The option hereby granted may be exercised
for 30 days after the date hereof and may be exercised in whole or in part at any time within such period from time to time upon
notice by the Representative to the Company setting forth the number of Option Shares as to which the several Underwriters are
then exercising the option and the time and date of payment and delivery for such Option Shares. Any such time and date of delivery
(each, a “Date of Delivery”) shall be determined by the Representative, but shall not be later than 10 full
business days after the exercise of said option, nor in any event prior to the Closing Time (as defined below). If the option is
exercised as to all or any portion of the Option Shares, each of the Underwriters, acting severally and not jointly, will purchase
that proportion of the total number of Option Shares then being purchased which the number of Firm Shares set forth in Schedule
A opposite the name of such Underwriter bears to the total number of Firm Shares, subject, in each case, to such adjustments
as the Representative in its sole discretion shall make to eliminate any sales or purchases of fractional shares.
(c) Payment.
Payment of the purchase price for, and delivery of the Firm Shares shall be made at the offices of Hogan Lovells US LLP, 555 13th
Street, NW, Washington, DC 20004, or at such other place as shall be agreed upon by the Representative and the Company, at 9:00
a.m. (New York City time) on February 13, 2018 (unless postponed in accordance with the provisions of SECTION 11), or such other
time not later than 10 business days after such date as shall be agreed upon by the Representative and the Company (such time and
date of payment and delivery being herein called “Closing Time”).
In addition, in the
event that any or all of the Option Shares are purchased by the Underwriters, payment of the purchase price for, and delivery of
such Option Shares shall be made at the above-mentioned offices, or at such other place as shall be agreed upon by the Representative
and the Company, on each Date of Delivery as specified in the notice from the Representative to the Company.
Payment shall be made
to the Company by wire transfer of immediately available funds to a bank account designated by the Company against delivery of
the Shares, through the facilities of The Depository Trust Company (“DTC”), to the Representative for the respective
accounts of the Underwriters. It is understood that each Underwriter has authorized the Representative, for its account, to accept
delivery of, receipt for, and make payment of the purchase price for, the Firm Shares and the Option Shares, if any, which it has
agreed to purchase. The Representative, individually and not as representative of the Underwriters, may (but shall not be obligated
to) make payment of the purchase price for the Firm Shares or the Option Shares, if any, to be purchased by any Underwriter whose
funds have not been received by the Closing Time or the relevant Date of Delivery, as the case may be, but such payment shall not
relieve such Underwriter from its obligations hereunder.
SECTION 3. Covenants
of the Company. The Company covenants with each Underwriter as follows:
(a) Compliance
with Commission Requests. Until the last Date of Delivery, the Company, subject to SECTION 3(b) hereof will comply with the
requirements of Rule 430A of the Securities Act Regulations and Rule 430B, and will notify the Representative immediately, and
confirm the notice in writing, (i) when any post-effective amendment to the Registration Statement or any new registration statement
relating to the Shares shall become effective or any amendment or supplement to the Pricing Disclosure Package or the Prospectus
shall have been used or filed, as the case may be, including any document incorporated by reference therein, in each case only
as permitted by SECTION 3 hereof, (ii) of the receipt of any comments from the Commission, (iii) of any request by the Commission
for any amendment to the Registration Statement or any amendment or supplement to the Pricing Disclosure Package or the Prospectus,
including any document incorporated by reference therein, or for additional information, (iv) of the issuance by the Commission
of any stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto or any notice
of objection to the use of the Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) or of
the issuance of any order preventing or suspending the use of any preliminary prospectus or the Prospectus or any amendment or
supplement thereto, or of the suspension of the qualification of the Shares for offering or sale in any jurisdiction, or of the
initiation or threatening of any proceedings for any of such purposes or of any examination pursuant to Section 8(d) or 8(e) of
the Securities Act concerning the Registration Statement and (v) if the Company becomes the subject of a proceeding under Section
8A of the Securities Act in connection with the offering of the Shares. The Company will effect all filings required under Rule
424(b), in the manner and within the time period required by Rule 424(b) (without reliance on Rule 424(b)(8)), and will take such
steps as it deems necessary to ascertain promptly whether the form of prospectus transmitted for filing under Rule 424(b) was received
for filing by the Commission and, in the event that it was not, it will promptly file such prospectus. Until the last Date of Delivery,
the Company will make every reasonable effort to prevent the issuance of any stop, prevention or suspension order and, if any such
order is issued, to obtain the lifting thereof at the earliest possible moment.
(b) Payment
of Filing Fees. If the Company elects to rely upon Rule 462(b), the Company will file a Rule 462(b) Registration Statement
with the Commission in compliance with Rule 462(b) by 10:00 p.m., New York City time, on the date of this Agreement, and at the
time of filing either to pay to the Commission the filing fee for any Rule 462(b) Registration Statement or to give irrevocable
instructions for the payment of such fee pursuant to Rule 111 of the Securities Act Regulations.
(c) Continued
Compliance with Securities Laws. The Company will comply with the Securities Act, the Securities Act Regulations, the Exchange
Act and the Exchange Act Regulations so as to permit the completion of the distribution of the Shares as contemplated in this Agreement
and in the Registration Statement, the Pricing Disclosure Package and the Prospectus. If at any time when a prospectus relating
to the Shares is (or, but for the exception afforded by Rule 172 of the Securities Act Regulations, would be) required by the Securities
Act to be delivered in connection with sales of the Shares ending no later than nine months from the date hereof (the “Delivery
Period”) any event shall occur or condition shall exist as a result of which it is necessary, in the opinion of counsel
for the Underwriters or for the Company, to (i) amend the Registration Statement in order that the Registration Statement will
not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading, (ii) amend or supplement the Pricing Disclosure Package or the Prospectus in order
that the Pricing Disclosure Package or the Prospectus, as the case may be, will not include any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein not misleading in the light of the circumstances
existing at the time it is delivered to a purchaser or (iii) amend the Registration Statement or amend or supplement the Pricing
Disclosure Package or the Prospectus, as the case may be, including, without limitation, any document incorporated therein by reference,
in order to comply with the requirements of the Securities Act, the Securities Act Regulations, the Exchange Act or the Exchange
Act Regulations, the Company will promptly (A) give the Representative written notice of such event or condition, (B) prepare any
amendment or supplement as may be necessary to correct such statement or omission or to make the Registration Statement, the Pricing
Disclosure Package or the Prospectus comply with such requirements and, a reasonable amount of time prior to any proposed filing
or use, furnish the Representative with copies of any such amendment or supplement and (C) file with the Commission any such amendment
or supplement, provided that the Company shall not file or use any such amendment or supplement to which the Representative or
counsel for the Underwriters shall object.
(d) Filing
or Use of Amendments or Supplements. During the Delivery Period, the Company (A) will furnish to the Representative for review,
a reasonable period of time prior to the proposed time of filing of any proposed amendment or supplement to the Registration Statement
(including any Rule 462(b) Registration Statement), a copy of each such amendment or supplement, and (B) will not amend or supplement
the Registration Statement without the Representative’s prior written consent. Prior to amending or supplementing any preliminary
prospectus, the Pricing Prospectus or the Prospectus, the Company shall furnish to the Representative for review, a reasonable
amount of time prior to the time of filing or use of the proposed amendment or supplement, a copy of each such proposed amendment
or supplement. The Company shall not file or use any such proposed amendment or supplement without the Representative’s prior
written consent, which cannot be unreasonably withheld.
(e) Delivery
of Registration Statements. The Company has furnished or will deliver to the Representative and counsel for the Underwriters,
without charge, signed copies of the Registration Statement as originally filed, any Rule 462(b) Registration Statement and each
amendment thereto (including exhibits filed therewith or incorporated by reference therein and documents incorporated or deemed
to be incorporated by reference therein) and signed copies of all consents and certificates of experts, and will also deliver to
the Representative, without charge, a conformed copy of the Registration Statement as originally filed and each amendment thereto
(without exhibits) for each of the Underwriters. The signed copies of the Registration Statement and each amendment thereto furnished
to the Underwriters will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR,
except to the extent permitted by Regulation S-T.
(f) Delivery
of Prospectuses. The Company has delivered to each Underwriter, without charge, as many copies of each preliminary prospectus
as such Underwriter reasonably requested, and the Company hereby consents to the use of such copies for purposes permitted by the
Securities Act. The Company will furnish to each Underwriter, without charge, during the Delivery Period, such number of copies
of the Prospectus (as amended or supplemented) as such Underwriter may reasonably request. The Prospectus and any amendments or
supplements thereto furnished to the Underwriters will be identical to the electronically transmitted copies thereof filed with
the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.
(g) Blue
Sky Qualifications. The Company will use its best efforts, in cooperation with the Underwriters, to qualify the Shares for
offering and sale under the applicable securities laws of such states and non-U.S. jurisdictions as the Representative may designate
and to maintain such qualifications in effect during the Delivery Period; provided, that the Company shall not be obligated to
file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction
in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is
not otherwise so subject.
(h) Earnings
Statements. The Company will timely file such reports pursuant to the Exchange Act as are necessary in order to make generally
available to its securityholders as soon as practicable an earnings statement for the purposes of, and to provide to the Underwriters
the benefits contemplated by, the last paragraph of Section 11(a) of the Securities Act.
(i) Use
of Proceeds. The Company will use the net proceeds received by it from the sale of the Shares in the manner specified in the
Registration Statement, the preliminary prospectus contained in the Pricing Disclosure Package and the Prospectus under “Use
of Proceeds.”
(j) Listing.
The Company will use its best efforts to effect and maintain the listing of the Shares on Nasdaq and will file with Nasdaq all
documents and notices required by Nasdaq.
(k) Restriction
on Sale of Securities. During a period of 90 days from the date of this Agreement (the “Lock-Up Period”),
the Company will not, without the prior written consent of the Representative, directly or indirectly (i) offer, pledge, sell,
contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or
warrant for the sale of, hypothecate, establish an open “put equivalent position” within the meaning of Rule 16a-1(h)
of the Exchange Act Regulations, or otherwise dispose of or transfer any shares of Common Stock or any securities convertible into
or exercisable or exchangeable for Common Stock, or file any registration statement under the Securities Act with respect to any
of the foregoing or (ii) enter into any swap, hedge or any other agreement or any transaction that transfers, in whole or in part,
directly or indirectly, the economic consequence of ownership of the Shares or such other securities, whether any such swap, hedge
or transaction described in clause (i) or (ii) above is to be settled by delivery of any shares of Common Stock or other securities,
in cash or otherwise. The foregoing sentence shall not apply to (A) the Shares to be sold hereunder, (B) any shares of Common Stock
issued by the Company upon the exercise of an option or warrant or the conversion of a security outstanding on the date hereof
and referred to in the Prospectus, or (C) any shares of Common Stock issued or options, restricted stock units or other securities
granted pursuant to existing employee benefit plans of the Company referred to in the Prospectus, provided that such options, restricted
stock units or other securities shall not be vested and exercisable within the Lock-Up Period.
(l) Reporting
Requirements. The Company, during the Delivery Period, will file all documents required to be filed with the Commission pursuant
to the Exchange Act within the time periods required by, and each such document will meet the requirements of, the Exchange Act
and the Exchange Act Regulations.
(m) Lock-Up
Agreements. During the Lock-Up Period, the Company will enforce all agreements between the Company and any of its security
holders that restrict or prohibit, expressly or in operation, the offer, sale or transfer of shares of Common Stock or securities
convertible into or exchangeable or exercisable for any shares of Common Stock, or any of the other actions restricted or prohibited
under the terms of the form of “lock-up” agreement. In addition, the Company will direct the transfer agent to place
stop transfer restrictions upon any such securities of the Company that are bound by such “lock-up” agreements for
the duration of the periods contemplated by such agreements, including, without limitation, “lock-up” agreements entered
into by the Company’s officers and directors pursuant to SECTION 6(k) hereof.
(n) Issuer
Free Writing Prospectuses. The Company agrees that, unless it obtains the prior written consent of the Representative, it will
not make any offer relating to the Shares that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute
a “free writing prospectus,” or a portion thereof, required to be filed by the Company with the Commission or retained
by the Company under Rule 433; provided, that the Representative will be deemed to have consented to any Issuer General Use Free
Writing Prospectuses listed on Schedule B hereto and any “road show that is a written communication” within
the meaning of Rule 433(d)(8)(i) that has been reviewed by the Representative. The Company represents that it has treated or agrees
that it will treat each such free writing prospectus consented to, or deemed consented to, by the Representative as an Issuer Free
Writing Prospectus and that it has complied and will comply with the applicable requirements of Rule 433 with respect thereto,
including timely filing with the Commission where required, legending and record keeping. If at any time following issuance of
an Issuer Free Writing Prospectus during the Delivery Period there occurred or occurs an event or condition as a result of which
such Issuer Free Writing Prospectus included or would include an untrue statement of a material fact or omitted or would omit to
state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at that subsequent
time, not misleading, the Company will promptly notify the Representative in writing and will promptly amend or supplement, at
its own expense, such Issuer Free Writing Prospectus to correct such untrue statement or omission.
(o) Renewal
Deadline. If, immediately prior to the third anniversary of the initial effective date of the Registration Statement (the “Renewal
Deadline”), any Shares remain unsold by the Underwriters, the Company will, prior to the Renewal Deadline, (i) promptly
notify the Representative in writing and (ii) promptly file, if it is eligible to do so, a new shelf registration statement relating
to the Shares, in a form and substance satisfactory to the Underwriters. If, at the Renewal Deadline, the Company is not eligible
to file a shelf registration statement, the Company will, prior to the Renewal Deadline, (i) promptly notify the Representative
in writing, (ii) promptly file a new registration statement or post-effective amendment on the proper form relating to such Shares,
in a form and substance satisfactory to the Underwriters, (iii) use its best efforts to cause such registration statement or post-effective
amendment to be declared effective within 60 days after the Renewal Deadline and (iv) promptly notify the Representative in writing
of such effectiveness. The Company will take all other action necessary or appropriate to permit the offering and sale of the Shares
to continue as contemplated in the expired Registration Statement. References herein to the “Registration Statement”
shall include such new shelf registration statement or post-effective amendment, as the case may be.
(p) DTC.
The Company will cooperate with the Underwriters and use its best efforts to permit the Shares to be eligible for clearance, settlement
and trading through the facilities of DTC.
(q) Investment
Company Act. The Company shall not invest or otherwise use the proceeds received by the Company from its sale of the Shares
in such a manner as could require the Company or any of the Subsidiaries to register as an investment company under the Investment
Company Act.
(r) Regulation
M. The Company will not take, and will ensure that no affiliate of the Company will take, directly or indirectly, any action
designed to cause or result in or which constitutes or might reasonably be expected to constitute stabilization or manipulation
of the price of the Shares or any reference security with respect to the Shares, whether to facilitate the sale or resale of the
Shares or otherwise, and the Company will, and shall cause each of its affiliates to, comply with all applicable provisions of
Regulation M.
(s) Transfer
Agent. The Company shall maintain a registrar and transfer agent for the Shares.
(t) Sarbanes-Oxley
Act. The Company and its Subsidiaries will comply with all effective applicable provisions of the Sarbanes-Oxley Act.
(u) Taxes.
The Company will indemnify and hold harmless the Underwriters against any documentary, stamp, issue or similar tax, including any
interest and penalties, on the creation, issue and sale of the Shares and on the execution and delivery of this Agreement. All
payments to be made by the Company hereunder shall be made without withholding or deduction for or on account of any present or
future taxes, duties or governmental charges whatsoever unless the Company is compelled by law to deduct or withhold such taxes,
duties or charges. In that event, the Company shall pay such additional amounts as may be necessary in order that the net amounts
received after such withholding or deduction shall equal the amounts that would have been received if no withholding or deduction
had been made.
(v) Trademarks.
Upon request of any Underwriter, to furnish, or cause to be furnished, to such Underwriter an electronic version of the Company’s
trademarks, servicemarks and corporate logo for use on the website, if any, operated by such Underwriter for the purpose of facilitating
the on-line offering of the Shares (the “License”); provided that the License shall be used solely for the purpose
described above, is granted without any fee and may not be assigned or transferred.
SECTION 4. Payment
of Expenses.
(a) Expenses.
The Company will pay or cause to be paid all expenses incident to the performance of its obligations under this Agreement, including
(i) the preparation, printing and filing of the Registration Statement (including financial statements and exhibits) as originally
filed and each amendment thereto, (ii) the preparation, printing and delivery to the Underwriters of copies of each preliminary
prospectus, each Issuer Free Writing Prospectus and the Prospectus and any amendments or supplements thereto and any costs associated
with electronic delivery of any of the foregoing by the Underwriters to investors, (iii) the preparation, issuance and delivery
of the Shares to the Underwriters, including any stock or other transfer taxes and any stamp or other duties payable upon the sale,
issuance or delivery of the Shares to the Underwriters, (iv) the fees and disbursements of the Company’s counsel, accountants
and other advisors, (v) the qualification of the Shares under securities laws in accordance with the provisions of SECTION 3(g)
hereof, including filing fees and the reasonable fees and disbursements of counsel for the Underwriters in connection therewith
and in connection with the preparation, printing and delivery to the Underwriters of the Blue Sky Survey and any supplement thereto,
and the fees and expenses of making the Shares eligible for clearance, settlement and trading through the facilities of DTC, (vi)
the fees and expenses of any transfer agent or registrar for the Shares, (vii) the costs and expenses of the Company relating to
investor presentations on any “road show” undertaken in connection with the marketing of the Shares, including, without
limitation, expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged
in connection with the road show presentations, travel and lodging expenses of the representatives and officers of the Company
and any such consultants, (viii) the filing fees incident to, and the reasonable fees and disbursements of counsel to the Underwriters
in connection with, the review by FINRA, if required, of the terms of the sale of the Shares, (ix) the fees and expenses incurred
in connection with the listing of the Shares on Nasdaq, (x) the costs and expenses (including, without limitation, any damages
or other amounts payable in connection with legal or contractual liability) associated with the reforming of any contracts for
sale of the Shares made by the Underwriters caused by a breach of the representation contained in the second sentence of SECTION
1(a)(ii) and SECTION 1(a)(x), and (xi) the reasonable legal fees and expenses (including fees and disbursements of the counsel
for the Underwriters), and out of pocket marketing and syndication and any expenses related to any investor presentation and/or
roadshow that are incurred by the Underwriters. Notwithstanding anything to the contrary set forth herein, the maximum amount of
fees and expenses of the Underwriters, including fees and disbursements of the counsel for the Underwriters, that are to be reimbursed
by the Company in accordance with this Agreement shall not exceed $125,000 in the aggregate without the Company’s prior written
consent.
(b) Termination
of Agreement. If this Agreement is terminated by the Representative in accordance with the provisions of SECTION 6, SECTION
10(a) or SECTION 11 hereof, the Company shall reimburse the Underwriters for all of their out-of-pocket expenses, including the
reasonable fees and disbursements of counsel for the Underwriters.
SECTION 5. Use
of Free Writing Prospectuses by Underwriters. Each Underwriter represents and agrees that, unless it obtains the prior consent
of the Company and the Representative, it has not made and will not make any offer relating to the Shares that would constitute
an Issuer Free Writing Prospectus, or that would otherwise constitute a “free writing prospectus,” as defined in Rule
405, required to be filed with the Commission.
SECTION 6. Conditions
of Underwriters’ Obligations. The obligations of the several Underwriters hereunder are subject to the accuracy of the
representations and warranties of the Company contained herein or in certificates of any officer of the Company or any of its Subsidiaries
delivered pursuant to the provisions hereof, to the performance by the Company of its covenants and other obligations hereunder,
and to the following further conditions:
(a) Effectiveness
of Registration Statement, etc. The Registration Statement was filed by the Company with the Commission and has been declared
effective not earlier than three years prior to the date hereof. Each preliminary prospectus, each Issuer Free Writing Prospectus
and the Prospectus shall have been filed as required by Rule 424(b) (without reliance on Rule 424(b)(8)) and Rule 433, as applicable,
within the time period prescribed by, and in compliance with, the Securities Act Regulations. If the Company has elected to rely
on Rule 462(b), the Rule 462(b) Registration Statement shall have become effective by 10:00 p.m., New York City time, on the date
of this Agreement. At the Closing Time, no stop order suspending the effectiveness of the Registration Statement or any post-effective
amendment thereto shall have been issued under the Securities Act or proceedings therefor initiated or threatened by the Commission,
no notice of objection to the use of the Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2)
has been received by the Company, no order preventing or suspending the use of any preliminary prospectus or the Prospectus or
any amendment or supplement thereto has been issued and no proceedings for any of those purposes have been instituted or are pending
or, to the Company’s knowledge, contemplated. The Company has complied with each request (if any) from the Commission for
additional information.
(b) Opinion
of Counsel for Company. At the Closing Time, the Representative shall have received (i) the favorable opinion and (ii) a letter
of negative assurance, each dated the Closing Time, of Porter Wright Morris & Arthur LLP, counsel for the Company in form and
substance satisfactory to the Representative and substantially in the form of Exhibit A-1 and Exhibit A-2 hereto,
respectively, together with signed or reproduced copies of such letters for each of the other Underwriters, in form and substance
reasonably satisfactory to the Representative.
(c) Opinion
of Counsel for Underwriters. At the Closing Time, the Representative shall have received the favorable opinion, dated the Closing
Time, of Hogan Lovells US LLP, counsel for the Underwriters, in form and substance satisfactory to the Representative, together
with signed or reproduced copies of such letter for each of the other Underwriters. In giving such opinion, such counsel may rely,
as to all matters governed by the laws of jurisdictions other than the law of the State of New York and the federal securities
laws of the United States, upon the opinions of counsel satisfactory to the Representative. Such counsel may also state that, insofar
as such opinion involves factual matters, they have relied, to the extent they deem proper, upon certificates of officers and other
representatives of the Company and its Subsidiaries and certificates of public officials.
(d) Officers’
Certificate. At the Closing Time, the Representative shall have received a certificate of the Chief Executive Officer or the
President of the Company and of the chief financial or chief accounting officer of the Company, dated as of Closing Time, to the
effect that (i) there has been no Material Adverse Effect, (ii) the representations and warranties of the Company in this Agreement
are true and correct with the same force and effect as though expressly made at and as of the Closing Time, (iii) the Company has
complied with all agreements and satisfied all conditions on its part to be performed or satisfied at or prior to the Closing Time,
and (iv) the conditions specified in SECTION 6(a) hereof have been satisfied.
(e) Comfort
Letter. At the time of the execution of this Agreement, the Representative shall have received from BKD, LLP a letter, dated
such date, in form and substance satisfactory to the Representative, together with signed or reproduced copies of such letter for
each of the other Underwriters, containing statements and information of the type ordinarily included in accountants’ “comfort
letters” to underwriters with respect to the financial statements and financial information contained in the Registration
Statement, the Pricing Disclosure Package and the Prospectus.
(f) Bring-down
Comfort Letter. At the Closing Time, the Representative shall have received from BKD, LLP a letter, dated as of the Closing
Time, to the effect that they reaffirm the statements made in the letter furnished pursuant to SECTION 6(e) hereof, except that
the specified date referred to shall be a date not more than three business days prior to the Closing Time.
(g) Certificate
of the Chief Financial Officer. At the Closing Time, the Representative shall have received a certificate executed by the Chief
Financial Officer, in form and substance satisfactory to the Representative.
(h) Approval
of Listing. The Common Stock (including the Shares) is registered pursuant to Section 12(b) of the Exchange Act and is listed
on Nasdaq, and the Company has taken no action designed to, or likely to have the effect of, terminating the registration of the
Common Stock under the Exchange Act or delisting the Common Stock from Nasdaq, nor has the Company received any notification that
the Commission or Nasdaq is contemplating terminating such registration or listing.
(i) No
Objection. FINRA shall have not raised any objection with respect to the fairness and reasonableness of the underwriting terms
and arrangements relating to the offering of the Shares.
(j) No
Important Changes. Since the execution of this Agreement, (i) in the judgment of the Representative, since the respective date
hereof or the respective dates of which information is given in the Registration Statement, the Pricing Disclosure Package or the
Prospectus, there shall not have occurred any Material Adverse Effect, and (ii) there shall not have been any decrease in or withdrawal
of the rating of any debt securities or preferred securities of the Company or any of its subsidiaries by any “nationally
recognized statistical rating organization” (as defined for purposes of Section 3(a)(62) of the Exchange Act) or any
notice given of any intended or potential decrease in or withdrawal of any such rating or of a possible change in any such rating
that does not indicate the direction of the possible change.
(k) Lock-up
Agreements. At the date of this Agreement, the Representative shall have received an agreement substantially in the form of
Exhibit B hereto signed by the persons listed on Schedule D hereto.
(l) Delivery
of Prospectus. The Company shall have complied with the provisions hereof with respect to the furnishing of prospectuses, in
electronic or printed format, on the New York business day next succeeding the date of this Agreement.
(m) No
Termination Event. On or after the date hereof, there shall not have occurred any of the events, circumstances or occurrences
set forth in SECTION 10(a).
(n) No
Legal Impediment to Issuance and/or Sale. No action shall have been taken and no statute, rule, regulation or order shall have
been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Closing
Time, prevent the issuance or sale of the Firm Shares by the Company; and no injunction or order of any federal, state or foreign
court shall have been issued that would, as of the Closing Time, prevent the issuance or sale of the Firm Shares by the Company.
(o) Good
Standing. The Representative shall have received on the date of the Closing Time satisfactory evidence of the good standing
of the Company, the Bank and their respective subsidiaries in their respective jurisdictions of organization, in each case in writing
or any standard form of telecommunication from the appropriate governmental authorities of such jurisdictions.
(p) Conditions
to Purchase of Option Shares. In the event that the Underwriters exercise their option provided in SECTION 2(b) hereof to purchase
all or any portion of the Option Shares, the representations and warranties of the Company contained herein and the statements
in any certificates furnished by the Company or any of its Subsidiaries hereunder shall be true and correct as of each Date of
Delivery, the conditions set forth in SECTION 6(h), (i) and (j) hereof shall be satisfied at each Date of Delivery and, at the
relevant Date of Delivery, the Representative shall have received:
(i) Officers’
Certificate. A certificate, dated such Date of Delivery, of the Chief Executive Officer or the President of the Company and
of the chief financial or chief accounting officer of the Company confirming that the certificate delivered at the Closing Time
pursuant to SECTION 6(d) hereof remains true and correct as of such Date of Delivery.
(ii) Opinion
of Counsel for Company. The favorable opinion of Porter Wright Morris & Arthur LLP, counsel for the Company in form and
substance satisfactory to the Representative, dated such Date of Delivery, relating to the Option Shares to be purchased on such
Date of Delivery and otherwise to the same effect as the opinion required by SECTION 6(b) hereof.
(iii) Opinion
of Counsel for Underwriters. The favorable opinion of Hogan Lovells US LLP, counsel for the Underwriters, in form and substance
satisfactory to the Representative, dated such Date of Delivery, relating to the Option Shares to be purchased on such Date of
Delivery and otherwise to the same effect as the opinion required by SECTION 6(c) hereof.
(iv) Bring-down
Comfort Letter. A letter from BKD, LLP, in form and substance satisfactory to the Representative, each dated such Date of Delivery,
substantially in the same form and substance as the letter furnished to the Representative pursuant to SECTION 6(e) hereof, except
that the “specified date” in each letter furnished pursuant to this paragraph shall be a date not more than two business
days prior to such Date of Delivery.
(v) Certificate
of the Chief Financial Officer. A certificate executed by the Chief Financial Officer of the Company, dated as of such Date
of Delivery, substantially in the same form and substance as the certificate required by SECTION 6(g).
(vi) No
Termination Event. There shall not have occurred prior to the Date of Delivery any of the events, circumstances or occurrences
set forth in SECTION 10(a).
(vii) No
Legal Impediment to Issuance and/or Sale. No action shall have been taken and no statute, rule, regulation or order shall have
been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Date
of Delivery, prevent the issuance or sale of the Option Shares by the Company; and no injunction or order of any federal, state
or foreign court shall have been issued that would, as of the Date of Delivery, prevent the issuance or sale of the Option Shares
by the Company.
(viii) Good
Standing. The Representative shall have received on the Date of Delivery satisfactory evidence of the good standing of the
Company, the Bank and their respective subsidiaries in their respective jurisdictions of organization, in each case in writing
or any standard form of telecommunication from the appropriate governmental authorities of such jurisdictions.
(q) Additional
Documents. At the Closing Time and at each Date of Delivery (if any), counsel for the Underwriters shall have been furnished
with such documents and opinions as they may require for the purpose of enabling them to pass upon the issuance and sale of the
Shares as herein contemplated, or in order to evidence the accuracy of any of the representations or warranties, or the fulfillment
of any of the conditions, herein contained; and all proceedings taken by the Company in connection with the issuance and sale of
the Shares as herein contemplated shall be in form and substance satisfactory to the Representative and counsel for the Underwriters.
(r) Termination
of Agreement. If any condition specified in this Section shall not have been fulfilled when and as required to be fulfilled,
this Agreement, or, in the case of any condition to the purchase of Option Shares on a Date of Delivery which is after the Closing
Time, the obligations of the several Underwriters to purchase the relevant Option Shares, may be terminated by the Representative
by notice to the Company at any time at or prior to Closing Time or such Date of Delivery, as the case may be, and such termination
shall be without liability of any party to any other party except as provided in SECTION 4 and except that SECTION 1, SECTION 6,
SECTION 7, SECTION 8, SECTION 9, SECTION 14, SECTION 15, SECTION 16 and SECTION 17 shall survive any such termination and remain
in full force and effect.
SECTION 7. Indemnification.
(a) Indemnification
of Underwriters. The Company agrees to indemnify and hold harmless each Underwriter, its affiliates (as such term is defined
in Rule 501(b) of the Securities Act Regulations (each, an “Affiliate”)), selling agents, officers and directors
and each person, if any, who controls any Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act as follows:
(i) against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), including any information
deemed to be a part thereof pursuant to Rule 430B, or the omission or alleged omission therefrom of a material fact required to
be stated therein or necessary to make the statements therein not misleading or arising out of any untrue statement or alleged
untrue statement of a material fact included in any preliminary prospectus, any Issuer Free Writing Prospectus, the Pricing Disclosure
Package or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission in any preliminary prospectus,
any Issuer Free Writing Prospectus, the Pricing Disclosure Package or the Prospectus (or any amendment or supplement thereto) of
a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading;
(ii) against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement
of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject
to SECTION 7(d) hereof) any such settlement is effected with the written consent of the Company;
(iii) against
any and all expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel chosen by the Representative),
reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission,
or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above;
provided, that this indemnity agreement
shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made in the Registration Statement (or any amendment thereto), including any information
deemed to be a part thereof pursuant to Rule 430B, or in any preliminary prospectus, any Issuer Free Writing Prospectus, the Pricing
Disclosure Package or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with the Underwriter
Information.
(b) Indemnification
of Company, Directors and Officers. Each Underwriter severally agrees to indemnify and hold harmless the Company, its directors,
each of its officers who signed the Registration Statement, and each person, if any, who controls the Company within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act against any and all loss, liability, claim, damage and expense
described in the indemnity contained in SECTION 7(a) hereof, as incurred, but only with respect to untrue statements or omissions,
or alleged untrue statements or omissions, made in the Registration Statement (or any amendment thereto), including any information
deemed to be a part thereof pursuant to Rule 430B, or in any preliminary prospectus, any Issuer Free Writing Prospectus, the Pricing
Disclosure Package or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with the Underwriter
Information.
(c) Actions
against Parties; Notification. Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying
party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying
party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity
agreement. In the case of parties indemnified pursuant to SECTION 7(a) hereof, counsel to the indemnified parties shall be selected
by the Representative, and, in the case of parties indemnified pursuant to SECTION 7(b) hereof, counsel to the indemnified parties
shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such action; provided,
that counsel to the indemnifying party shall not (except with the prior written consent of the indemnified party) also be counsel
to the indemnified party. In no event shall the indemnifying parties be liable for fees and expenses of more than one counsel (in
addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or
separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances.
No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the
entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced
or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this SECTION 7
or SECTION 8 hereof (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise
or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation,
proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or
on behalf of any indemnified party.
(d) Settlement
without Consent if Failure to Reimburse. If at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by SECTION 7(a)(ii) effected without its written consent if (i) such settlement is entered
into more than 60 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have
received notice of the terms of such settlement at least 45 days prior to such settlement being entered into and (iii) such indemnifying
party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement.
SECTION 8. Contribution.
If the indemnification provided for in SECTION 7 hereof is for any reason unavailable to or insufficient to hold harmless an indemnified
party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall
contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party,
as incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Company, on the one hand,
and the Underwriters, on the other hand, from the offering of the Shares pursuant to this Agreement or (ii) if the allocation provided
by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company, on the one hand, and the Underwriters, on the other
hand, in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as
well as any other relevant equitable considerations.
The relative benefits
received by the Company, on the one hand, and the Underwriters, on the other hand, in connection with the offering of the Shares
pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering
of the Shares pursuant to this Agreement (before deducting expenses) received by the Company, on the one hand, and the total underwriting
discount received by the Underwriters, on the other hand, in each case as set forth on the cover of the Prospectus, bear to the
aggregate initial public offering price of the Shares as set forth on the cover of the Prospectus.
The relative fault
of the Company, on the one hand, and the Underwriters, on the other hand, shall be determined by reference to, among other things,
whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact
relates to information supplied by the Company or by the Underwriters and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission.
The Company and the
Underwriters agree that it would not be just and equitable if contribution pursuant to this SECTION 8 were determined by pro rata
allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does
not take account of the equitable considerations referred to above in this SECTION 8. The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to above in this SECTION 8 shall be deemed to include
any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever
based upon any such untrue or alleged untrue statement or omission or alleged omission.
Notwithstanding the
provisions of this SECTION 8, no Underwriter shall be required to contribute any amount in excess of the underwriting discount
received by such Underwriter in connection with the Shares underwritten by it and distributed to the public.
No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The Underwriters’ respective obligations to contribute
pursuant to this SECTION 8 are several in proportion to the number of Firm Shares set forth opposite their respective names in
Schedule A hereto and not joint.
For purposes of this
SECTION 8, each person, if any, who controls an Underwriter within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act and each Underwriter’s Affiliates, officers, directors and selling agents shall have the same rights
to contribution as such Underwriter, and each director of the Company, each officer of the Company who signed the Registration
Statement, and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act shall have the same rights to contribution as the Company.
SECTION 9. Representations,
Warranties and Agreements to Survive. All representations, warranties and agreements contained in this Agreement or in certificates
of officers of the Company or any of its Subsidiaries submitted pursuant hereto shall remain operative and in full force and effect
regardless of (i) any investigation made by or on behalf of any Underwriter or its Affiliates, officers, directors and or selling
agents, any person controlling any Underwriter or the Company’s officers or directors or any person controlling the Company
and (ii) delivery of and payment for the Shares.
SECTION 10. Termination
of Agreement.
(a) Termination.
The Representative may terminate this Agreement, by notice to the Company, at any time at or prior to the Closing Time, (i) if
there has been, in the judgment of the Representative, since the time of execution of this Agreement or since the respective dates
as of which information is given in the Registration Statement, the Pricing Disclosure Package or the Prospectus, any Material
Adverse Effect, (ii) if there has occurred any material adverse change in the financial markets in the United States or the international
financial markets, any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or development involving
a prospective change in national or international political, financial or economic conditions, including without limitation as
a result of terrorist activities, in each case the effect of which is such as to make it, in the judgment of the Representative,
impracticable or inadvisable to market the Shares or to enforce contracts for the sale of the Shares, (iii) if trading in any securities
of the Company has been suspended or materially limited by the Commission or Nasdaq, (iv) if trading generally on the New York
Stock Exchange or Nasdaq has been suspended or materially limited, or minimum or maximum prices for trading have been fixed, or
maximum ranges for prices have been required, by any of said exchanges or by order of the Commission, FINRA or any other governmental
agency or body, (v) if a material disruption has occurred in commercial banking or securities settlement or clearance services
in the United States or with respect to Clearstream or Euroclear systems in Europe, or (vi) if a banking moratorium has been declared
by either federal, New York or State of Ohio authorities.
(b) Liabilities.
If this Agreement is terminated pursuant to this Section, such termination shall be without liability of any party to any other
party except as provided in SECTION 4 hereof, and provided further that SECTION 1, SECTION 6, SECTION 7, SECTION 8, SECTION 9,
SECTION 14, SECTION 15, SECTION 16 and SECTION 17 shall survive such termination and remain in full force and effect.
SECTION 11. Default
by One or More of the Underwriters. If one or more of the Underwriters shall fail at the Closing Time or a Date of Delivery
to purchase the Shares which it or they are obligated to purchase under this Agreement (the “Defaulted Shares”),
the Representative shall have the right, within 24 hours thereafter, to make arrangements for one or more of the non-defaulting
Underwriters, or any other underwriters, to purchase all, but not less than all, of the Defaulted Shares in such amounts as may
be agreed upon and upon the terms herein set forth; if, however, the Representative shall not have completed such arrangements
within such 24-hour period, then:
(i) if
the number of Defaulted Shares does not exceed 10% of the number of Shares to be purchased on such date, each of the non-defaulting
Underwriters shall be obligated, severally and not jointly, to purchase the full amount thereof in the proportions that their respective
underwriting obligations hereunder bear to the underwriting obligations of all non-defaulting Underwriters, or
(ii) if
the number of Defaulted Shares exceeds 10% of the number of Shares to be purchased on such date, this Agreement or, with respect
to any Date of Delivery which occurs after the Closing Time, the obligation of the Underwriters to purchase, and the Company to
sell, the Option Shares to be purchased and sold on such Date of Delivery shall terminate without liability on the part of any
non-defaulting Underwriter.
No action taken pursuant
to this Section shall relieve any defaulting Underwriter from liability in respect of its default.
In the event of any
such default which does not result in a termination of this Agreement or, in the case of a Date of Delivery which is after the
Closing Time, which does not result in a termination of the obligation of the Underwriters to purchase and the Company to sell
the relevant Option Shares, as the case may be, either the Representative or the Company shall have the right to postpone the Closing
Time or the relevant Date of Delivery, as the case may be, for a period not exceeding seven days in order to effect any required
changes in the Registration Statement, the Pricing Disclosure Package or the Prospectus or in any other documents or arrangements.
As used herein, the term “Underwriter” includes any person substituted for an Underwriter under this SECTION 11.
SECTION 12. Notices.
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted
by any standard form of telecommunication. Notices to the Underwriters shall be directed to the Representative care of FIG Partners,
LLC, 1475 Peachtree Street NE, Suite #800, Atlanta, GA 30309, attention of Lozan Aleksandrov, Deputy of Capital Markets, e-mail:
LAleksandrov@figpartners.com; and notices to the Company shall be directed to it at SB Financial Group, Inc., 401 Clinton Street,
Defiance, OH 43512, attention of Mark Klein, email: mark.klein@yourstatebank.com.
SECTION 13. No
Advisory or Fiduciary Relationship. The Company acknowledges and agrees that (a) the purchase and sale of the Shares pursuant
to this Agreement, including the determination of the initial public offering price of the Shares and any related discounts and
commissions, is an arm’s-length commercial transaction between the Company, on the one hand, and the several Underwriters,
on the other hand, (b) in connection with the offering of the Shares and the process leading thereto, each Underwriter is and has
been acting solely as a principal and is not the agent or fiduciary of the Company or any of its Subsidiaries or its shareholders,
creditors, employees or any other party, (c) no Underwriter has assumed or will assume an advisory or fiduciary responsibility
in favor of the Company in connection with the offering of the Shares or the process leading thereto (irrespective of whether such
Underwriter has advised or is currently advising the Company or any of its Subsidiaries on other matters) or any other obligation
to the Company in connection with the offering of the Shares except the obligations expressly set forth in this Agreement, (d)
the Underwriters and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ
from those of the Company, and (e) the Underwriters have not provided any legal, accounting, financial, regulatory or tax advice
in connection with the offering of the Shares and the Company has consulted its own respective legal, accounting, financial, regulatory
and tax advisors to the extent it deemed appropriate.
SECTION 14. Parties.
This Agreement shall each inure to the benefit of and be binding upon the Underwriters and the Company and their respective successors.
Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm or corporation, other
than the Underwriters and the Company and their respective successors and the controlling persons, Affiliates, selling agents,
officers and directors referred to in SECTION 7 and SECTION 8 and their heirs and legal representatives, any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision herein contained. This Agreement and all conditions
and provisions hereof are intended to be for the sole and exclusive benefit of the Underwriters and the Company and their respective
successors, and said controlling persons, Affiliates, selling agents, officers and directors and their heirs and legal representatives,
and for the benefit of no other person, firm or corporation. No purchaser of Shares from any Underwriter shall be deemed to be
a successor by reason merely of such purchase.
SECTION 15. Trial
by Jury. Each of the Company (on its behalf and, to the extent permitted by applicable law, on behalf of its shareholders and
affiliates) and the Underwriters hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right
to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
SECTION 16. GOVERNING
LAW. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CHOICE OF LAW PROVISIONS.
SECTION 17. Consent
to Jurisdiction. Each of the parties hereto agrees that any legal suit, action or proceeding arising out of or based upon this
Agreement or the transactions contemplated hereby shall be instituted in (i) the federal courts of the United States of America
located in the City and County of New York, Borough of Manhattan or (ii) the courts of the State of New York located in the City
and County of New York, Borough of Manhattan (collectively, the “Specified Courts”), and irrevocably submits
to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any Specified Court,
as to which such jurisdiction is non-exclusive) of the Specified Courts in any such suit, action or proceeding. Service of any
process, summons, notice or document by mail to such party’s address set forth above shall be effective service of process
for any suit, action or proceeding brought in any Specified Court. Each of the parties hereto irrevocably and unconditionally waives
any objection to the laying of venue of any suit, action or proceeding in the Specified Courts and irrevocably and unconditionally
waive and agree not to plead or claim in any Specified Court that any such suit, action or proceeding brought in any Specified
Court has been brought in an inconvenient forum.
SECTION 18. TIME.
TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK
CITY TIME.
SECTION 19. Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts
shall together constitute one and the same Agreement. The exchange of copies of this Agreement and of signature pages by facsimile
or other electronic means shall constitute effective execution and delivery of this Agreement by the parties hereto and may be
used in lieu of the original signature pages to this Agreement for all purposes.
SECTION 20. Effect
of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof.
SECTION 21. Entire
Agreement; Amendments. This Agreement constitutes the entire Agreement of the parties to this Agreement and supersedes all
prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter
hereof. This Agreement may not be amended or modified unless in writing by all of the parties hereto, and no condition herein (express
or implied) may be waived unless waived in writing by each party that the condition is meant to benefit.
If the foregoing is
in accordance with your understanding of our agreement, please sign and return to the Company a counterpart hereof, whereupon this
instrument, along with all counterparts, will become a binding agreement among the Underwriters and the Company in accordance with
its terms.
| |
Very truly yours, |
| |
|
|
| |
SB FINANCIAL GROUP, INC. |
| |
|
|
| |
|
/s/ Mark A. Klein |
| |
Name: |
Mark A. Klein |
| |
Title: |
Chairman, President and CEO |
| |
|
|
| |
THE STATE BANK AND TRUST COMPANY |
| |
|
|
| |
|
/s/ Mark A. Klein |
| |
Name: |
Mark A. Klein |
| |
Title: |
Chairman, President and CEO |
[Signature Page to Underwriting Agreement]
CONFIRMED AND ACCEPTED,
as of the date first above written:
| FIG PARTNERS, LLC |
|
| |
|
| By: |
/s/ Matthew Veneri |
|
| |
Name: Matthew Veneri |
|
| |
Title: Managing Principal |
|
For itself and as Representative of the
other Underwriters named in Schedule A hereto.
[Signature Page to Underwriting Agreement]
SCHEDULE A
The public offering
price per share for the Shares shall be $18.00.
The purchase price
per share for the Shares to be paid by the several Underwriters shall be $16.9569, being an amount equal to the public offering
price set forth above less $1.0431 per share.
| Name of Underwriter | |
Number of
Firm Shares | |
| FIG Partners, LLC | |
| 1,449,275 | |
| Total | |
| 1,449,275 | |
SCHEDULE B
Issuer Free Writing Prospectuses
| 1. | Issuer Free Writing Prospectus, dated February 2018, filed with the Commission on February 5, 2018. |
| 2. | Issuer Free Writing Prospectus, dated February 9, 2018, filed with the Commission on February 9, 2018. |
SCHEDULE C
Subsidiaries of the Company
SB Financial Group, Inc. Subsidiaries:
| Name |
|
Jurisdiction of Incorporation |
| The State Bank and Trust Company |
|
Ohio |
| Rurbanc Data Services, Inc. |
|
Ohio |
| RFCBC, Inc. |
|
Ohio |
| Rurban Statutory Trust II |
|
Declaration of Trust – State of Delaware |
The State Bank and Trust Company Subsidiaries:
| Name |
|
Jurisdiction of Incorporation |
| Rurban Mortgage Company |
|
Ohio |
| SBT Insurance, LLC |
|
Ohio |
SCHEDULE D
Persons Delivering Lock-Up Agreements
Executive Officers
Mark A. Klein
Anthony V. Cosentino
Keeta J. Diller
Jonathan R. Gathman
Non-Employee Directors
Richard L. Hardgrove
George W. Carter
Robert A. Fawcett, Jr.
Gaylyn J. Finn
Rita A. Kissner
William G. Martin
Timothy J. Stolly
EXHIBIT A-1
Form of Opinion of Porter Wright Morris
& Arthur LLP
(a) The
Company is validly existing as a corporation and in good standing as of the date of the Good Standing Certificate under the laws
of the State of Ohio. The Company has the corporate power to own, lease and operate its current properties and to conduct
its business as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus.
(b) The
State Bank and Trust Company (the “Bank”) is validly existing as a bank under the laws of the state of Ohio as of the
date of the Bank Certificate. The Bank has the power to own, lease and operate its current properties and to conduct its business
as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus.
(c) The
authorized capital stock of the Company, as of [__________], 2018, was as set forth under the caption “Capitalization”
in the Prospectus.
(d) The
Agreement has been duly (i) authorized, and (ii) executed and delivered by the Company.
(e) The
Shares have been duly authorized, and when issued in accordance with the provisions of the Agreement, will be validly issued, fully
paid and non-assessable. No holder of outstanding shares of common stock of the Company has any statutory preemptive right under
Ohio General Corporation Law.
(f) Based
solely upon our review of the information regarding the Company provided through the EDGAR System on the Commission’s
website, the Registration Statement became effective under the Securities Act of 1933, as amended (the “1933 Act”).
Based solely upon a review of the Stop Orders page of the Commission’s website (http://www.sec.gov/litigation/stoporders.shtml),
no stop order suspending the effectiveness of the Registration Statement has been issued under the 1933 Act, and to our knowledge,
no proceedings for that purpose have been instituted or threatened by the Commission. The required filings of the Prospectus pursuant
to Rule 424(b) promulgated pursuant to the Securities Act have been made in the manner and within the time period required by Rule
424(b).
(g) The
Registration Statement, the Pricing Disclosure Package and the Prospectus (except for the financial statements and supporting schedules
included therein, as to which we express no opinion) comply as to form in all material respects with the requirements of the Securities
Act and the applicable rules and regulations thereunder. The documents incorporated by reference in the Registration Statement,
the Pricing Disclosure Package and the Prospectus pursuant to Item 12 of Form S-3 under the Securities Act of 1933 (other than
the financial statements and schedules and financial information and data included therein or omitted therefrom, as to which we
express no opinion), at the time they were filed with the Commission, complied as to form in all material respects with the requirements
of the Securities Exchange Act of 1934, as amended, and the applicable rules and regulations thereunder.
(h) The
execution and delivery and consummation by the Company of the Agreement do not (i) violate the laws of Ohio General Corporation
Law or the Articles of Incorporation or Bylaws of the Company, (ii) constitute a violation by the Company of any provision of Applicable
Federal Law or any provision of Applicable State Law, (iii) violate any court or administrative orders, judgments and decrees naming
the Company, or (iv) breach or constitute a default under any contract to which the Company is subject or bound and which is filed
as an exhibit to the Registration Statement.
(i) No
approval or consent of, or registration or filing with, any federal governmental agency or any Ohio governmental agency is required
to be obtained or made by the Company under Applicable Federal Law or Applicable State Law in connection with the execution and
delivery and consummation by the Company of the Agreement.
(j) The
information contained or incorporated by reference in the Registration Statement, the Pricing Disclosure Package and the Prospectus
under the captions “Supervision and Regulation” and “Description of Common Stock”, to the extent such information
constitutes matters of law or legal conclusions, has been reviewed by us and is accurate in all material respects.
(k) The
Company is not, and immediately following the issuance and sale of the Shares and the application of the proceeds thereof as described
in the Prospectus will not be, an “investment company” within the meaning of the Investment Company Act.
(l) The
Bank is an insured depositary institution under the FDI Act as of the date of the FDIC Certificate.
EXHIBIT A-2
Form of Letter of Negative Assurance
of Porter Wright Morris & Arthur LLP
Subject to the foregoing, we confirm to
you that, on the basis of the information we gained in the course of performing the services referred to above, no facts have come
to our attention that cause us to believe that:
(i) the
Registration Statement, as of its most recent effective date, and insofar as it relates to the offering of the Securities, contained
an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the
statements therein not misleading;
(ii) the
Prospectus, as of its date or as of the date hereof, contained or contains an untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading;
(iii) the
Pricing Disclosure Package, as of [_:__] [A.M./P.M.] (New York City time) on [_______], 2018 (which you have informed us is a time
prior to the time of the first sale of the Securities by any Underwriter), contained an untrue statement of a material fact or
omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading;
(iv) there
are any legal or governmental proceedings pending or threatened against the Company that are required to be disclosed in the Registration
Statement, the Pricing Disclosure Package, or the Prospectus, other than those disclosed therein; or
(v) there
are any contracts or documents of a character required to be described in the Registration Statement, the Pricing Disclosure Package,
or the Prospectus or to be filed as exhibits to the Registration Statement that are not described or referred to therein or so
filed;
EXHIBIT B
Form of Lock-Up Agreement
FIG
PARTNERS, LLC
1475 Peachtree Street NE, Suite #800
Atlanta, GA 30309
As Representative of the several Underwriters
Re: Proposed
Public Offering by SB Financial Group, Inc.
Ladies and Gentlemen:
The undersigned, an
executive officer and/or director of SB Financial Group, Inc., an Ohio corporation (the “Company”), understands
that FIG Partners, LLC (“Representative”), as representative of the several Underwriters (each an “Underwriter”
and collectively, the “Underwriters”), propose to enter into an Underwriting Agreement (the “Underwriting
Agreement”) with the Company providing for the public offering (the “Offering”) of shares of the Company’s
common stock, no par value (the “Common Stock”).
In recognition of the
benefit that the Offering will confer upon the undersigned as a shareholder, executive officer and/or director of the Company,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned agrees
with each Underwriter to be named in the Underwriting Agreement that, commencing on the date hereof and ending on, and including,
the date that is 90 days from the date of the Underwriting Agreement (such 90-day period being referred to herein as the “Lock-Up
Period”), the undersigned will not (and will cause any spouse or immediate family member (as defined in Rule 16a-1(e)
under the Securities Exchange Act of 1934, as amended, referred to herein as the “Exchange Act”)) of the spouse
or the undersigned living in the undersigned’s household, any partnership, corporation or other entity within the undersigned’s
control, and any trustee of any trust that holds Common Stock or other securities of the Company for the benefit of the undersigned
or such spouse or family member not to), without the prior written consent of the Representative, directly or indirectly, (i) offer,
pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant for the sale of, hypothecate, establish an open “put equivalent position” within the meaning of Rule
16a-1(h) under the Exchange Act, or otherwise dispose of or transfer any shares of Common Stock or any securities convertible into
or exchangeable or exercisable for Common Stock, whether now owned or hereafter acquired by the undersigned or with respect to
which the undersigned has or hereafter acquires the power of disposition, or exercise any right with respect to the registration
of any of the foregoing, or file or cause to be filed any registration statement in connection therewith under the Securities Act
of 1933, as amended (the “Securities Act”), (ii) enter into any swap, hedge or any other agreement or any transaction
that transfers, in whole or in part, the economic consequence of ownership of the Common Stock, whether any such swap, hedge or
transaction is to be settled by delivery of Common Stock or other securities, in cash or otherwise, or (iii) publicly disclose
the intention to effect any transaction specified in (i) or (ii).
Notwithstanding the
foregoing, (A) the foregoing restrictions shall not apply to (i) pledges in a bona fide transaction that are in effect as
of the date hereof to a lender to the undersigned, as disclosed in writing to the Representative; and (ii) the establishment of
a trading plan pursuant to Rule 10b5-1 under the Exchange Act, provided that such plan does not provide for the transfer of Common
Stock or any securities convertible into, or exchangeable or exercisable for Common Stock during the Lock-Up Period; and (B) the
undersigned may transfer the undersigned’s shares of Common Stock or any securities convertible into or exchangeable or exercisable
for Common Stock (i) as a bona fide gift or gifts, provided that the donee or donees agree to be bound in writing by the
restrictions set forth herein; (ii) to any corporation, trust, family limited partnership or other entity for the direct or indirect
benefit of the undersigned or the immediate family of the undersigned; provided, that the trustee of the trust or general partner
of the family limited partnership, as the case may be, agrees to be bound by the restrictions set forth herein; and provided further,
that any such transfer shall not involve a disposition for value; (iii) transfers by will or intestate succession to executors,
administrators, testamentary trustees, legatees or beneficiaries, provided that the recipients of such transfers agree to be bound
in writing by the restrictions set forth herein; (iv) to the Company, to satisfy any tax withholding obligations of the Company
or the undersigned, or to satisfy the exercise price of stock options by the undersigned, upon the exercise or vesting of equity
awards outstanding or hereinafter granted under any exercise by the undersigned of stock options or vesting of outstanding restricted
stock awards or other similar equity incentive awards that have been granted by the Company prior to, and are outstanding as of,
the date of the Underwriting Agreement (or are granted after the date of the Underwriting Agreement pursuant to a plan or arrangement
that is in place prior to the date of the Underwriting Agreement); or (v) with the prior written consent of the Representative.
The undersigned represents
and warrants that the undersigned beneficially owns the shares of Common Stock covered by this Lock-Up Agreement and that the undersigned
now has and, except as contemplated by clauses (B)(i) through (B)(v) above, for the duration of this Lock-Up Agreement will have
good and marketable title to the undersigned’s shares of Common Stock, free and clear of all liens, encumbrances, and claims
whatsoever. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company’s transfer
agent and registrar against the transfer of the undersigned’s shares of Common Stock, except in compliance with this Lock-Up
Agreement. In furtherance of the foregoing, the Company and its transfer agent are hereby authorized to decline to make any transfer
of securities if such transfer would constitute a violation or breach of this Lock-Up Agreement.
In addition, the undersigned
agrees that, during the Lock-Up Period, without the prior written consent of the Representative (which consent may be withheld
in its sole discretion): (i) the undersigned will not request, make any demand for or exercise any right with respect to, the registration
of any Common Stock or any shares of Common Stock or securities convertible into or exchangeable or exercisable for any shares
of Common Stock (“Related Securities”) and (ii) the undersigned waives any and all notice requirements and rights
with respect to the registration of any shares of Common Stock or Related Securities pursuant to any agreement, understanding or
otherwise to which the undersigned is a party.
The undersigned represents
and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement. The undersigned agrees that
the provisions of this Lock-Up Agreement shall be binding also upon the successors, assigns, heirs and personal representatives
of the undersigned.
The undersigned understands
that, if the Underwriting Agreement does not become effective, or if the Underwriting Agreement (other than the provisions thereof
which survive termination) shall terminate or be terminated prior to payment for and delivery of the shares of Common Stock to
be sold thereunder, the undersigned shall be released from all obligations under this Lock-Up Agreement. Notwithstanding anything
herein to the contrary, this agreement shall automatically terminate and be of no further effect as of 5:00 p.m. New York City
time on February 23, 2018, if a closing for the Offering has not yet occurred as of that time.
This Lock-Up Agreement
shall be governed by and construed in accordance with the laws of the State of New York.
[Signature
page follows]
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Very truly yours, |
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Signature:______________________________ |
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Print Name:_____________________________ |
B-3
