PDT Staff Writer
Portsmouth’s American Savings Bank announced Friday it has entered into an agreement to purchase Cincinnati-based Cottage Savings Bank. Under the terms of the agreement, approved by the boards of directors of both banks, American Savings will pay Cottage’s shareholders about $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,” American Savings Bank President Mike Gampp said. “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 Cottage’s two branches: 9813 Montgomery Road and 7114 Miami Ave.
“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 about $265 million and deposits of about $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 merger is expected to be completed in the fall of 2012.
Wayne Allen may be reached at 740-353-3101, ext. 208, or email@example.com.