CAMBRIDGE, Ohio - Camco Financial Corp. announced Tuesday that it had agreed to buy Columbia Financial of Kentucky Inc. for $30.2 million.

Columbia, the $108 million-asset parent of Columbia Federal Savings Bank, near Cincinnati, would merge with Camco's Advantage Bank subsidiary but keep its name under the deal, which is expected to close in the fourth quarter. It would be the second Cincinnati-area purchase for $1 billion-asset Camco, which bought $150 million-asset Westwood Homestead Savings Bank in January 2000.

Robert V. Lynch, chief executive officer of Fort Mitchell, Ky.-based Columbia, said his company's shareholders would receive $6.90 in cash and 0.3681 share of Camco stock for each share owned.

Columbia's stock soared on news of the deal. At midday Tuesday it was up nearly 29%, to $10.60. Camco shares were down 2%, to $12.15.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.