FREMONT - Croghan Bancshares Inc., parent firm of Croghan Colonial Bank, of Fremont, said yesterday it has signed an agreement to acquire the Custar State Bank of Custar in a cash deal worth about $14 million.
The transaction, which is expected to be completed sometime after September, is subject to approval by Custar bank shareholders and federal regulators.
Steve Futrell, Croghan's chief executive officer, said the acquisition is a good fit and Custar's market is similar to areas that Croghan serves.
Croghan Colonial, founded in 1888, has nine branches all in Ohio, in Bellevue, Clyde, Fremont, Green Springs, Monroeville, and Port Clinton.
Custar State Bank has just one office, in Custar, which will become a branch of Croghan Colonial.
Under terms of the deal, Croghan Bancshares will pay $74.10 cash for each of the 187,498 outstanding shares of Custar State Bank stock.
As of June 30, Croghan had total assets of $414 million, loans of $316 million, deposits of $322 million, and shareholder equity of $47 million.
Custar had $53 million in total assets, $33 million in loans, $44 million in deposits, and $9 million in shareholder equity.