In what would be its first acquisition in its 11-year history, Westfield Bancorp in Westfield Center, Ohio, is buying Western Reserve Bancorp in nearby Medina for about $18 million in cash.
Westfield said in a news release Wednesday that it would pay $29 for each of Western Reserve's outstanding shares, or roughly 9% above the price of its thinly traded stock.
As a condition of the deal, the $595 million-asset Westfield has also agreed to pay off the nearly $5 million Western Reserve owes to the Troubled Asset Relief Program.
The deal would combine two relatively new banks based in northeast Ohio. Westfield was established in 2001 as an affiliate of property and casualty insurer Westfield Insurance and Western Reserve was founded in 1998.
The combined company, which would retain the Westfield name, would have nearly $800 million of assets and seven branches in four counties.
The transaction, expected to close in the fourth quarter, is the second announced by a northeast Ohio bank this week. On Tuesday Peoples Bancorp (PEBO) in Marietta said it was acquiring Sistersville Bancorp in West Virginia for about $9.8 million.