United Bancshares (UBOH) in Columbus Grove, Ohio, has agreed to buy Ohio State Bank in Marion.
The $555 million-asset United will assume $3 million of trust-preferred stock in Ohio State Bancshares, plus unpaid accrued interest; repay about $550,000 of senior debt that the seller owes to another institution; and pay a cash amount equal to roughly half of the bank's tangible capital.
United will gain three branches, $94 million in assets, $70 million in loans and $76 million in deposits when it buys Ohio State Bank. The transaction is expected to close in the fourth quarter.
"This partnership... marks the next step in expanding United Bancshares community banking services throughout our markets and highlights our commitment to protecting access to a locally owned and operated community bank for businesses and individuals in our communities," Brian Young, United's president and chief executive, said in a press release Tuesday. "A number of the smaller community banks in our region are finding it difficult to maintain their independence in this economic and regulatory environment."
Performance Trust Capital Partners and Dinsmore & Shohl advised United. Shumaker, Loop & Kendrick advised Ohio State Bancshares.
