Peoples Bank has entered into a definitive agreement to buy all of the outstanding common stock of Ohio Commerce Bank, with a strategy to boost its footprint in Cleveland market.
The acquirer said that the transaction will enable it to offer extensive product offering and a full spectrum of financial expertise to Ohio business customers.
Ohio Commerce chairman Stuart Kline stated that customers will gain access to various products and services, including retirement plan services, investment, insurance and more commercial loan products.
As agreed, the acquire will pay a purchase price of $13.75 per share in cash of Ohio Commerce common stock for a total cash consideration of nearly $16.5m.
Pending approval from regulators and Ohio Commerce shareholders as well as satisfying to customary closing conditions, the transaction is likely to complete during the fourth quarter of 2013.
Ohio Commerce had total assets of $107m, total loans of $86m and total deposits of $95m, at 31 March 2013.
Ohio Commerce is being advised by Boenning & Scattergood, and Vorys, Sater, Seymour and Pease, while Dinsmore & Shohl is offering advice to Peoples Bancorp.
Peoples Bancorp has $1.9bn in total assets, operates from 49 locations and manages 44 ATMs in Ohio, West Virginia and Kentucky.