First Place plans to buy OC Financial

By Don Shilling

First Place now has only loan production offices in the Columbus area.

WARREN — First Place Financial Corp. intends to beef up its presence in central Ohio with the acquisition of a banking company based in suburban Columbus.

Warren-based First Place has reached an agreement to buy OC Financial, the Dublin, Ohio-based holding company for Ohio Central Savings. The bank has a branch in Columbus and one in Cleveland Heights.

The stock transaction is valued at $7.2 million and is expected to close by the end of June.

Steven Lewis, president and chief executive of First Place, said the holding company of First Place Bank has built a strong mortgage and commercial lending operation in the Columbus area. Adding Ohio Central Savings will give First Place a “retail deposit hub” to support the lending operations, he said. First Place has four lending offices in central Ohio.

Lewis said that the Ohio Central acquisition will lead First Place’s efforts to future expansion in that area. He added that its Cleveland Heights branch fits with First Place’s efforts to expand on the east side of Cleveland.

The transaction has been approved by boards of directors of both companies but still needs regulatory approval and the backing of OC Financial’s shareholders.

These shareholders are to receive 0.96 share of First Place stock for each of their shares. The average closing price of First Place stock for the 10 business days that ended Tuesday was $13.37, giving a value of $12.86 for each OC share. The company’s stock was trading at $10 when the transaction was announced after the market closed Wednesday.

First Place has $3.3 billion in assets, compared with $64 million at OC Financial. First Place has 43 branches, two business financial centers and 20 loan production offices. It has expanded in recent years into Michigan, Indiana and North Carolina.

The deal with OC Financial would make First Place the 33rd largest publicly traded savings institution in the U.S. and second largest in Ohio.

shilling@vindy.com