Ohio’s United Bancorp has signed a deal to buy Powhatan Point Community Bancshares, Inc., in a stock and cash transaction worth just under $7 million.
Upon completion, Powhatan Point’s subsidiary First National Bank of Powhatan Point, Ohio, will be merged into United’s subsidiary Unified Bank, which has 18 branches in seven Ohio counties and one LPO in Wheeling, W.Va.
Powhatan operates one full-service office and has approximately $59 million in assets, $7.9 million in loans, $53.6 million of deposits and $5.2 million in consolidated equity as of March 31.
“We are very excited to announce this acquisition,” said Scott Everson, president and CEO of the $487 million United. “First National Bank of Powhatan Point, its board of directors and staff have a great reputation in the Belmont County market for providing excellent customer service and meeting the needs of their community.”
The Martins Ferry-based United expects the transaction to be approximately 7.0 percent accretive to fully diluted earnings per share. Tangible book value per share dilution earnback will be approximately 2.2 years using the crossover method. These estimates include fully-phased in cost savings of 21 percent. In addition, UBCP will restructure Powhatan’s investment portfolio with an expected 1.05 percent yield improvement.
United is being advised by ProBank Austin and Shumaker Loop & Kendrick LLP. Powhatan is being advised by CAMELS Consulting Group and Dinsmore & Shohl LLP.