CLEVELAND -- The National City Corp. said Friday it has reached a definitive agreement to spend an estimated $200 million to acquire Ohio Bancorp, a bank holding company that has $1.7 billion in assets.
Ohio Bancorp. is headquartered in Youngstown.
The acquisition, structured as a purchase, calls for shareholders of Ohio Bancorp to receive a combination of cash and stock valued at about $28 a share.
The merged bank will have about $3 billion in assets, making it one of National City Corp.'s larger affiliates.
'Pursuing in-market acquisitions has been a part of our strategy,' said Edward Brandon, chairman and chief executive officer of National City Corp.
'This strong retail bank has been the market leader in eastern Ohio and complements National City's existing franchise. The combination of our two organizations offers enhanced market share and the potential for significant cost savings,' he said.
Brandon said National City will be responsive to the needs of Youngstown and its surrounding communities.
He said Ohio Bancorp customers will be offered an expanded array of products, including home equity loans, adjustable rate mortgages, and investment services. The products will be offered through existing branches by current Ohio Bancorp employees.
'We are excited about the prospect of aligning our company with one of the strongest and most profitable banking institutions in the country, and one that has been a part of the northeast Ohio community for many years,' said Ohio Bancorp Chairman, President and Chief Operating Officer Thomas Hollern. 'This is good news for our business and retail customers, the communities we serve and our employees,' he said.
The acquisition, which is subject to regulatory and Ohio Bancorp shareholder approval, is expected to be completed in the second half of 1993.
Ohio Bancorp's units will become a part of National City's affiliate bank, National City Bank, Northeast, which presently has 40 offices in six northeastern Ohio counties. Ohio Bancorp units will adopt the National City name.
National City Corp. is among the 25 largest bank holding companies in the country based on assets.
National City has nearly $29 billion in assets, $2.5 billion in equity and a market capitalization of over $4 billion.
National City operates more than 600 branches in the tri-state area of Ohio, Kentucky and Indiana.