Cheviot Financial Corp. said it will buy fellow small Cincinnati-based bank First Franklin Corp. for about $24.4 million, a deal that will double Cheviot's size.
First Franklin's longtime chairman and chief executive, Thomas Siemens, retired at the end of March.
Under the agreement, Cheviot will buy First Franklin shares for $14.50 apiece — an 85% premium to Tuesday's closing price. The stock was last at the offer price three years ago.
Cheviot President and Chief Executive Thomas J. Linneman said the purchase will boost his company's earnings and put capital levels more than twice that of minimum requirements.
The merger is expected to close during the first quarter.
Shares of Cheviot closed at $8.53 Tuesday and were inactive premarket. The company has been reporting improved results this year.
