Wayne Allen Wallen@communitycommon.com
June 18, 2012
Portsmouth-based American Savings Bank announced Friday; it has entered into an agreement to purchased Cincinnati-based Cottage Savings Bank. Under the terms of the agreement, approved by the boards of directors of both facilities, American Savings will pay total consideration to Cottage's shareholders of approximately $9.4 million in cash.
"This is an opportunity for us to grow outside the Portsmouth market. We're excited to go down to Cincinnati with a new market and a new opportunity to grow," said Mike Gampp, American Savings Bank President. "They have a great staff and a great team of people that will now join us."
He said American Savings intends to continue to operate all of Cottage's offices.
"There will be no loss in staff; there will be no job loss. Over the long term we are looking to grow, so if anything we will be adding positions not cutting them," Gampp said.
"Our board recognized American Savings Bank's capital strength and array of banking services would result in a continuation of exemplary customer service our depositors and borrowers have come to expect, would provide additional banking services for such customers which are necessary in today's competitive banking environment and will deliver an attractive price for our shareholders," said Barbara Farris, Chairman and President of Cottage Savings Bank said in a released statement.
According to a press release from American Savings, following the closing of the transaction, American Savings will have assets of approximately $265 million and deposits of approximately $220 Million, with locations in Hamilton, Pike and Scioto Counties in Ohio and Greenup County in Kentucky.
The transaction is subject to certain conditions, including requisite regulatory approvals and the approval of Cottage's shareholders. The merge is expected to be completed in the fall of 2012.