Magazine article American Banker

Ohio Legacy to Get Infusion of Capital

Magazine article American Banker

Ohio Legacy to Get Infusion of Capital

Article excerpt

Byline: Bonnie McGeer

Ohio Legacy Corp. has lined up a lifesaving capital infusion.

The $186 million-asset Wooster company, which warned this spring that it might fail, announced Monday that it has agreed to sell a majority stake to Excel Financial LLC of St. Clairsville, Ohio, for $15 million.

Bruce A. Cassidy Sr., Excel's managing partner, said in a press release that his company would tap Rick Hull and Denise Penz to rebuild Ohio Legacy and establish a trust, investment and private banking business.

Cassidy did not provide details about their backgrounds, but said Hull would become the president and chief executive officer of Ohio Legacy and its bank unit after the deal's closing, which is expected near yearend.

"Excel's group of local investors and the seasoned banking professionals we have engaged have been interested in establishing a community banking presence in northeastern Ohio for some time," Cassidy said.

"With an invigorated balance sheet, and our management team in place, we look to position Legacy to take advantage of the opportunities the current banking landscape presents."

Excel could not be reached for further comment, and Ohio Legacy did not return a call by press time.

The deal calls for Ohio Legacy to issue 15 million shares of common stock to Excel for $1 each - or roughly seven times the number of shares it has outstanding.

Its shares mostly have been trading for less than $1 since mid-August. …

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