Ohio’s Richwood Banking Company is moving into Springfield in its first acquisition in its 150 year history, having inked a deal to acquire Home City Federal Savings Bank, Springfield, for $31.7 million.
The $513 million Richwood has six locations across four counties in central Ohio while Home City serves the Springfield area with two branches. Founded in 1925, Home City has $167.5 million in assets, $145.2 million in loans, $118.6 million in deposits and $19.7 million in common equity.
“We wanted to ensure that our employees as well as the Springfield community would gain from this purchase and see it as favorable change. After meeting and seeing their impact, Richwood Bank was the clear choice for us,” said Home City Federal Savings Bank CEO J. William Stapleton.
Founded in 1867, Richwood Bank has $457 million in deposits and $304 million in loans. Previously, it added an office in Delaware, Ohio, in 2010.
“We’ve always considered new locations that complement our goal to reintroduce the benefits community banking can provide to local businesses, individuals, agriculture and team members,” said Chad Hoffman, CEO and president of Richwood Bank. “After meeting the leaders of Home City Federal and learning more about their history, values, success and principles – the foundation to build upon their story was already solidified. This may be called an acquisition, but we view it as a partnership that allows us to expand our reach to more Ohioans like us.”
The all-cash purchase, which has been unanimously approved by each institution’s board of directors, is expected to close before the end of the year.
In 2015, the bank launched Richwood Marketing and RichwoodU to offer marketing and business education services to its commercial customers and expanding its corporate campus in Richwood. The bank’s full service marketing agency represents 135 business clients.
Richwood has received a fairness opinion from Mercer Capital and is being advised by Dinsmore & Shohl LLP. Home City is being advised by Boenning & Scattergood, Inc. and Vorys, Sater, Seymour and Pease LLP.