GALLIPOLIS — Ohio Valley Bank and Milton Banking Co. on Friday signed an agreement to complete a merger of the two area banking businesses.
According to information provided by bank officials, MBC operates five branches with assets of $135 million as of Sept. 30, 2015. These offices are located in Jackson, Wellston, Oak Hill, New Holland and Mt. Sterling.
“We are excited for the coming together of these two proven, hard-working community banks,” said Thomas E. Wiseman, president and chief executive officer of Ohio Valley Bank and Ohio Valley Banc Corp. “Like Ohio Valley Bank, Milton Banking Co. weathered wars, the Great Depression and, in recent decades, a national recession. Our longstanding track records of perseverance and customer care brought us together. We will become united under a community-first mission with more locations than ever before to better serve southern Ohio.”
The Milton Banking Co. was organized in 1921 in Wellston as a state-chartered bank. Today, the bank offers services familiar to community-banking customers.
Under the terms of the agreement, 80 percent of MBC common shares will be exchanged for OVBC common shares and the other 20 percent will be exchanged for cash. In addition, each of the outstanding MBC preferred shares will be redeemed for cash. Based upon the Jan. 6 closing sale price of OVBC common shares, the transaction is valued at approximately $20 million.
The transaction is subject to certain conditions, including the approval of regulatory authorities and the shareholders of MBC. The merger is expected to be completed by fall. Ohio Valley and Milton bank officials report that there are no plans to close Milton Bank locations, and no layoffs are expected due to the merger.
John G. Jones, president and chief executive officer of MBC and the Milton Banking Co., will be appointed president of the Milton Bank division of Ohio Valley Bank and member of the board of directors for both OVBC and Ohio Valley Bank.
“In today’s ever-changing regulatory landscape, it makes sense for community banks to work together,” Jones said. “We have been friendly competitors with Ohio Valley Bank and its management for years and now look forward to working together to continue to serve our friends and neighbors. We will be able to offer more services than in the past and will have resources available to better help our customers. Our joining ensures our viability into the future.”
The primary subsidiaries of OVBC, based in Gallipolis, are: Ohio Valley Bank and Loan Central Inc. Ohio Valley Bank is an FDIC-insured, state member bank of the Federal Reserve operating 14 offices in Ohio and West Virginia including a newly opened loan office in Athens. Loan Central, specializing in tax preparation and tax refund loans, is a finance company with seven offices in southern Ohio. Ohio Valley Banc Corp. stock is traded on he NASDAQ Global Market under the symbol OVBC.
For more information, visit www.ovbc.com.