Sky Bank merging with Huntington

No changes are expected in local banking operations.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
The lighted bank sign above downtown Youngstown will be changing again.
Sky Bank is becoming part of Huntington National Bank as part of a corporate merger, which means the green-and-blue Sky Bank sign will be coming down.
Frank Hierro, president for Sky's Mahoning Valley region, said he expects the sign above the bank's building on Federal Plaza will be replaced with Huntington's green logo. The merger is expected to close between July and September of next year.
The bank sign is a recognized feature of downtown's skyline because Mahoning National Bank posted its name in 8-foot tall letters for many years. After acquiring Mahoning in 1999, Sky had that sign removed and installed its own logo the next year.
Despite the sign change, the local region will see little change after the merger with Columbus-based Huntington, Hierro said. Sky is based in Bowling Green.
The two banks have no overlapping branches in the Mahoning Valley, so none will close. Huntington's closest branches are in Portage County.
Regions retained
Also, the operating regions that were used by Sky will be retained by Huntington, he said. Huntington will have 13 operating regions, including six that will be led by executives from Sky.
Hierro will remain a regional president, overseeing banking operations in Mahoning, Trumbull and Ashtabula counties. Jay Zatta will continue to oversee the Ohio Valley Region, which is based in Salineville. Steve Sant will remain president of the Western Pennsylvania Region, which is based in New Castle, Pa.
Hierro said the regional presidents will continue to have autonomy in setting budgets for expenses such as marketing and community support. He added that his management team will be retained.
It's possible there could even be employment growth in the area because of the merger, he said. Some of the offices that are based in Youngstown and Warren support all of Sky's operations, so jobs are sometimes added when the company grows, he said.
Sky has 160 workers in downtown Youngstown, including two units that support all of Sky's operations. An Internet banking support group takes calls from people having technical problems with online banking, and a small business lending unit provides underwriting services for loans.
The bank has 80 employees in downtown Warren, which includes a call center.
Overall, Sky has 400 full- and part-time employees in the region, which includes Mahoning, Trumbull and Ashtabula counties.
Here's the deal
Huntington announced Wednesday that it was acquiring Sky in a 3.6 billion deal.
Huntington will pay 30.22 for each share of Sky stock, a 25 percent premium to its closing price of 24.17 Wednesday on the Nasdaq Stock Market. Sky shareholders also will receive cash of 3.02 per share.
Huntington Bancshares is a 36 billion regional bank holding company with more than 380 banking offices in Indiana, Kentucky, Michigan, Ohio and West Virginia. Sky Financial has 18 billion in assets and 330 offices in Ohio, Michigan, Pennsylvania, Indiana and West Virginia.
Thomas E. Hoaglin, Huntington's chairman, president and chief executive, will remain chairman and CEO. Marty Adams, the top official at Sky, becomes president and chief operating officer. Adams will become CEO by Dec. 31, 2009, with Hoaglin remaining as chairman until early 2011, when he will retire.
Huntington shares closed down 1.74, or 7 percent, Thursday at 22.96. The shares have traded between 22.56 and 24.97 in the past year.
Sky shares closed up 3.40, or 14 percent, at 27.69. The shares have traded between 23.09 and 28.55 in the past year.
shilling@vindy.com