Huntington Bancshares (HBAN) in Columbus, Ohio, has agreed to buy Camco Financial (CAFI) in Cambridge, Ohio.
Huntington will pay $97 million in cash and stock for the $800 million-asset Camco. At June 30, Camco also had 22 branches and $600 million in deposits.
Camco shareholders can choose to receive $6 a share or cash, or roughly 0.7 shares of Huntington stock, for each of their shares. The $56 billion-asset Huntington expects 80% of the consideration to involve stock.
"This is a great opportunity to enhance our presence in several areas within our existing footprint and to expand into several new attractive geographies," Steve Steinour, Huntington's chairman, president and chief executive, said in a press release Thursday. "The acquisition will also give our current customers the convenience of more branches."
The companies expect to complete the transaction in the first half of next year. With more than 45% geographic overlap, Huntington said it expects the acquisition to be accretive to earnings per share in the first full year. The company also said it reviewed more than 75% of Camco's loan portfolio.