MEDINA, OH--(Marketwire - Nov 30, 2012) - Westfield Bancorp, Inc., Westfield Center, Ohio, announced today that it has closed its acquisition of Western Reserve Bancorp, Inc. (PINKSHEETS: WRBO), Medina, Ohio, as of the close of business on November 30, 2012. The transaction was first announced on June 6, 2012.
Western Reserve Bancorp is the holding company for Western Reserve Bank, which has merged into Westfield Bank, Westfield Bancorp's wholly-owned subsidiary bank and an affiliate of Westfield Insurance. Western Reserve Bank's two offices in Medina and Brecksville will operate as branches of Westfield Bank.
"We are pleased to have completed the merger of two trusted community banks serving Northeast Ohio, offering our customers the option to continue banking with people who are local and relationship-oriented," said Jon Park, Chairman and Bank Leader of Westfield Bank. "We welcome all of Western Reserve's customers, who will benefit from our full-service banking capabilities and resources. We look forward to providing them with the same level of personal, knowledgeable service that they have enjoyed for the last fourteen years. We are also very excited to be establishing an initial presence in Cuyahoga County."
Under the terms of the agreement, common shareholders of Western Reserve Bancorp received $29.00 per share. The aggregate merger consideration, including payment for stock options, was $18,040,000. In connection with the merger, Westfield repaid $4,935,000 in preferred stock held by the United States Department of the Treasury as a result of Western Reserve Bancorp's participation in the Capital Purchase Program.
As a result of the merger, Westfield Bank has total assets of $836 million and six banking offices. Westfield Insurance established Westfield Bank in 2001. Westfield Insurance is a leading property and casualty insurance company writing commercial insurance in 21 states, personal insurance in 10 states and surety in 31 states. In business since 1848 and headquartered in Westfield Center, Ohio, Westfield Insurance is rated A (Excellent) by A.M. Best Company. Westfield Bank maintains a Five-Star "Superior" rating from Bauer Financial for its financial strength and performance.
ParaCap Group, LLC acted as financial advisor to Westfield Bancorp with Critchfield, Critchfield & Johnston, Ltd. as its counsel. Austin Associates, LLC acted as financial advisor to Western Reserve Bancorp and Shumaker Loop & Kendrick, LLP was counsel to Western Reserve Bancorp in connection with the transaction.