Croghan wraps up acquisition

Fremont bank integrates Indebancorp in $28.9M deal

12/14/2013

FREMONT — Croghan Banc-shares Inc., parent firm of Croghan Colonial Bank of Fremont, said it has completed its acquisition of Indebancorp, the parent firm of National Bank of Ohio.

The completed transaction, valued at $28.9 million, took place on Dec. 6. Croghan Bancshares initiated efforts to acquire Indebancorp on June 21.

Rick Robertson, president and chief executive officer of Croghan, said National Bank of Ohio has been integrated into the Croghan Colonial Bank network.

The former National Bank branches in Oak Harbor, Port Clinton, Oregon, and Curtice, and a loan center in Perrysburg have been rebranded as Croghan Colonial Bank.

“This completes a very strategic acquisition for us at Croghan,” Mr. Robertson said in a statement. “We have a significant market share in Sandusky County; now we have a significant market share in Ottawa County.

“We have a growing presence in both Seneca and Huron counties, plus growth opportunities in Lucas and Wood counties. This positions us well to continue our community bank focus, which benefits both customers and shareholders,” Mr. Robertson said.

The acquisition was believed to be the largest financially for Croghan Bancshares, which was set up in 1984 to oversee Croghan Colonial, a 125-year-old Fremont bank.

The deal boosted Croghan’s asset base to more than $800 million from a previous $631 million, and its deposit base to $718 million from a previous $530 million.

As part of the transaction, Croghan Bancshares and Croghan Colonial Bank expanded their corporate boards to include John Caputo and James Dunn, both of whom were former directors of Indebancorp and National Bank of Ohio.

Croghan’s purchase of Indebancorp was a cash and stock deal worth approximately $28.9 million. Indebancorp shareholders got either $55 in cash and 1.63 shares of Croghan common stock, or a combination of 70 percent stock and 30 percent cash for each of their shares.

Indebancorp had between 400 and 450 shareholders.

Shares of Croghan’s stock, which are traded publicly over the counter, had no trading activity on Friday. However, on Monday, the first trading day after the deal closed, its shares rose 25 cents to close at $35. On Wednesday, the shares fell $1 to close at $34.

Contact Jon Chavez at: jchavez@theblade.com or 419-724-6128.