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Sky Financial to Acquire Belmont Bancorp
"BOWLING GREEN, Ohio -- Sky Financial Group Inc. plans to acquire Belmont Bancorp, Bridgeport, Ohio, and its wholly-owned subsidiary, Belmont National Bank, officials announced earlier today. The transaction is valued at $69.2 million, based upon Sky Financial's closing stock price as of Dec. 21. The agreement provides for the merger of Belmont into Sky Financial, and the subsequent merger of Belmont National Bank with Sky Bank.Under the terms of the agreement, shareholders of Belmont will be entitled to receive cash and/or shares of Sky Financial based upon an election process to occur prior to closing. Cash consideration is valued at $6.15 per Belmont share and stock consideration is fixed at an exchange ratio of 0.219 shares of Sky Financial for each share of Belmont. The agreement further provides that, in the aggregate, 72.5% of the Belmont shares will be exchanged for Sky Financial common stock, with the remainder of Belmont shares exchanged for cash. Belmont National Bank is a $297 million commercial bank that operates 12 full-service branches located in Belmont, Harrison and Tuscarawas counties in Ohio and Ohio County in West Virginia. The transaction is expected to be completed in the second quarter of 2005, pending regulatory approvals, the approval of the shareholders of Belmont and completion of other customary closing conditions."We have been looking for a good partner that would help us expand our presence in Sky's Ohio Valley Region,"stated Marty E. Adams, president, chairman and chief executive officer of Sky. Sky Bank's Ohio Valley Region currently covers five counties in southeastern Ohio and one county in West Virginia. Belmont will be integrated into the Ohio Valley Region led by Rick Hull, regional president for Sky Bank. "This is a great opportunity to immediately expand our market share in Belmont, Tuscarawas, Harrison and Ohio counties," Hull said. "Our goal in a merger like this one is to partner with an institution that has a similar philosophy to Sky."Sky Financial Group is a $15 billion diversified financial holding company that operates more than 280 financial centers and over 300 ATMs serving communities in Ohio, Pennsylvania, Michigan, Indiana and West Virginia. Sky's financial service affiliates include: Sky Bank, commercial and retail banking; Sky Trust, an asset management organization; and Sky Insurance and Stouffer- Herzog Insurance Agency, retail and commercial insurance agency services.Visit Sky Financial Group Inc.: www.skyfi.comVisit Belmont Bancorp: www.belmontbank.com"