A privately-owned bank based in Central Ohio recently announced plans to buy Home City Federal Savings Bank in Springfield as part of a roughly $32 million deal.
Richwood Bancshares, Inc. the holding company for the Richwood Banking Company, said it has signed a merger agreement in which it will acquire all of Home City’s assets in an all-cash transaction. Home City, incorporated in 1996, has two locations in Springfield and 27 employees. Those workers will all remain with the company, said Heather Wirtz, chief experience officer for the Richwood Banking Company.
Richwood was not looking to grow initially, Wirtz said. But they took a closer look once Home City’s assets became available and Richwood officials determined the footprint and mission of the two banks were similar. Officials from Home City did not return a call seeking comment Monday.
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“Because of the likeness of the two institutions it seemed like a perfect fit,” Wirtz said.
The transaction, once completed, will expand Richwood’s footprint and will allow the company to improve technology and add additional services not currently available at the Springfield location, Wirtz said. It’s possible the transaction could be completed as early as November.
Richwood operates its own marketing agency, she said. That allows the bank to provide services like assistance with online sales and advertising and provide educational programs like customer service for its business clients. Richwood also provides payroll services for more than 130 businesses, she said.
“We just really want to help our businesses make it,” Wirtz said.
Richwood has about 130 employees and operates six branches, mostly in Central Ohio cities like Marysville, Plain City, Richwood and Delaware. Home City’s two locations in Springfield are located at 2454 N. Limestone St. and 63 W. Main St. in Springfield.
Home City has about $167.5 million in assets, $145.2 million in loans and about $118.6 million in deposits as of March 31 this year, according to information from Richwood. Home City shareholders will receive $37.32 per share in cash for each outstanding common shares of Home City. The transaction is valued at $31.7 million, or 155 percent of Home City’s tangible book value as of March 31, according to information from Richwood.
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“With a larger lending limit and additional products and services, we will be in an even better position to compete, and we know that our employees will be ready for the challenge,” said Bill Stapleton, president and CEO of Home City in a news release. “We believe that this is a favorable outcome for our shareholders, community and staff.”
Once finalized, Richwood Bank will have eight branches serving five counties across central and southwestern Ohio.