Local Financial Corp. of Oklahoma City said it has reached a definitive agreement to buy Guthrie (Okla.) Federal Savings Bank for $9.5 million in cash.

The price is 1.2 times Guthrie's book value and 19.4 times its trailing fourth-quarter earnings.

Local Financial would pay Guthrie $22.25 for each outstanding share.

Guthrie, founded in 1906, has $50 million of assets. Local Financial is the $2.1 billion-asset parent of Local Oklahoma Bank; it operates 50 branches statewide.

The deal, announced last week, is expected to close in the fourth quarter.

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