United Community Financial Corp. in Youngstown, Ohio, said late Wednesday that it would sell four branches in the western part of the state to a unit of Croghan Bancshares Inc.
Croghan, which is based in Fremont, Ohio, will pay a 4% premium, or roughly $4.5 million, for all of the branches' $111.7 million in deposits. Croghan will also buy $28.1 million of performing consumer and residential loans at the branches, which are located in Fremont, Clyde, and Tiffin.
"The divestiture of these branches successfully completes one step in the execution of our capital plan," Patrick W. Bevack, United Community's president and chief executive, said in a press release. "The sale represents an opportunity for us to record a gain that will positively impact our capital levels and our book value per share, and it is expected to have minimal impact on liquidity and earnings from continuing operations."
The branch sale is expected to close in the fourth quarter.
