COLUMBUS, Ohio â€“ A local bank has been acquired by a large, corporate, banking institution. Huntington Bancshares Incorporated and Camco Financial Corporation announced on Thursday the signing of a definitive agreement under which Huntington will acquire Camco Financial, the parent company of Advantage Bank, in a cash and stock transaction. Camco is currently operating 22 banking offices with $0.8 billion in total assets and $0.6 billion in total deposits. Huntington Bank is a $56 billion regional bank holding company headquartered in Columbus, Ohio.
Jim Huston, chairman, president and CEO of Camco Financial and Advantage Bank said Huntington has a well-known legacy of investing in its customers and communities. Camco believes their customers will enjoy excellent service along with Huntingtonâ€™s broader suite of products.
According to Steve Steinour, chairman, president and CEO of Huntington Bank, It is a great opportunity to enhance Huntington's presence in several areas within its existing footprint and to expand into several new attractive geographies. The CEO went on to say said they are pleased to welcome the more than 55,000 customers of Advantage Bank to Huntington Bank.
Under the terms of the agreement, which was unanimously approved by the boards of both companies, shareholders of Camco Financial may elect to receive 0.7264 shares of Huntington common stock, or $6.00 in cash, for each share of Camco Financial common stock, subject to proration provisions specified in the merger agreement that provide for a targeted aggregate split of total consideration of 80% common stock and 20% cash. Based upon the Wednesday, October 9, 2013, closing price of $8.12 per share of Huntington common stock, the transaction is valued at approximately $97 million, including outstanding options and warrants.
The transaction is expected to be completed in the first half of 2014, subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of the shareholders of Camco Financial. Given the size and structure, the transaction has a de minimis impact to tangible book value. With over 45% geographic overlap, Huntington expects the acquisition to be accretive to earnings per share in the first full year. In completing diligence, Huntington reviewed over 75% of the loan portfolio.
Huntington Bancshares Incorporated is a $56 billion regional bank holding company headquartered in Columbus, Ohio. The Huntington National Bank, founded in 1866, provides full-service commercial, small business, and consumer banking services; mortgage banking services; treasury management and foreign exchange services; equipment leasing; wealth and investment management services; trust services; brokerage services; customized insurance brokerage and service programs; and other financial products and services. The principal markets for these services are Huntingtonâ€™s six-state banking franchise: Ohio, Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. The primary distribution channels include a banking network of more than 700 traditional branches and convenience branches located in grocery stores and retirement centers, and through an array of alternative distribution channels including internet and mobile banking, telephone banking, and more than 1,400 ATMs. Through automotive dealership relationships within its six-state banking franchise area and selected other Midwest and New England states, Huntington also provides commercial banking services to the automotive dealers and retail automobile financing for dealer customer. Additional information about Huntington Bank may be found on the Company's web site: www.huntington.com
About Camco Financial Corporation...
Camco Financial Corporation, holding company for Advantage Bank, is a multi-state bank holding company headquartered in Cambridge, Ohio. Advantage Bank offers community banking that includes commercial, business and consumer financial services and internet banking from 22 offices. Additional information about Camco Financial may be found on the Company's web sites: www.camcofinancial.com or www.advantagebank.com.