Maryland-based American Bank Holdings, Inc. and Ohio’s The Grange Bank announced today that the two companies have entered into an agreement under which American’s subsidiary, American Bank, will acquire The Grange Bank. The Grange Bank is a wholly owned subsidiary of the Grange Mutual Casualty Company.
In the transaction, American Bank will acquire approximately $95 million of home equity lines of credit, fixed rate home equity loans, commercial business loans and commercial real estate loans, as well as approximately $196 million of deposits. The Grange Bank will also be selling its personal auto and residential mortgage loan portfolios in other transactions, which are yet to be finalized.
The Grange Bank was started in 1999 to offer additional financial service products to Grange independent insurance agents as a product line enhancement. The expected synergy of banking and insurance, however, did not materialize as anticipated, thus the decision for Grange to exit the banking business, the company release said.
“Our strategy at Grange has always been to offer exceptional insurance products and claims service to our policyholders, with the best possible service,” said Phil Urban, president and CEO of Grange Insurance. “Selling the banking business will allow our company and our independent agent partners to focus on what we all do best, while still providing our former banking customers a safe and secure financial services provider.”
The transaction is expected to close in mid-2007, pending customary regulatory approvals. American Bank will pay the par value of the net loans purchased and cash and borrowings acquired, offset by the amount of the borrowings and deposits being acquired as well as the amount of the loan loss reserves.
Grange Mutual Casualty Group, based in Columbus, Ohio, identifies itself a $1 billion insurance provider. Through its network of independent agents, Grange offers auto, home, life, business and farm insurance protection through Grange Insurance, Trustgard Insurance and Integrity Insurance. The company serves policyholders in Georgia, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Ohio, South Carolina.
Source: Grange Mutual Casualty Group, American Bank
Topics Ohio
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