First Niles to Acquire Union Capital Mortgage Corp.
NILES, Ohio — First Niles Financial, Inc., the holding company for Home Federal Savings and Loan Association of Niles, has signed a definitive stock purchase agreement whereby First Niles will acquire Union Capital Mortgage Corp. of Mentor in a cash and stock transaction.
The agreement, announced Monday, has been approved by the board of directors of each company. Terms were not disclosed. Upon completion of the transaction, Union Capital will become a wholly-owned subsidiary of Home Federal.
Union Capital is a residential mortgage company founded in 1995. It originates and funds residential loans in Ohio, Florida and Georgia through its three office locations.
“We are excited about the opportunities that Union Capital provides us in expanding our customer base and access to markets throughout Northeast Ohio,” said Daniel Csontos, president of Home Federal, in a statement. “We expect the acquisition to be accretive to earnings per share immediately.”
Ronald M. Szuch, founder and president of Union Capital, said he, too, looks forward to the acquisition. “I also believe that the requirements for growth are already in place and that Home Federal’s common sense approach to lending fits perfectly with Union Capital’s own lending philosophy,” he said.
Subject to customary regulatory approval and other closing conditions, the transaction is expected to occur in the first quarter of 2020.
First Niles reported total assets of $95.5 million at the end of the third quarter. Net income of $161,000 was up from $62,000 for the third quarter of 2018.
Union Capital is not publicly traded and as such, financial information is not available.
Published by The Business Journal, Youngstown, Ohio.