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Other Events
9 Months Ended
Sep. 30, 2011
Other Events [Abstract] 
OTHER EVENTS
17. OTHER EVENTS
On August 31, 2011, Home Savings entered into a Purchase and Assumption Agreement with The Croghan Colonial Bank (“Croghan”), a wholly-owned subsidiary of Croghan Bancshares, Inc., for the sale of four of its western-most branches, located in Fremont, Clyde, Tiffin (Westgate) and downtown Tiffin, Ohio. In the transaction, Croghan will assume all of the deposit liabilities and buy the related fixed assets of the branches. Croghan will pay a premium of 4.0% (or approximately $4.5 million) on all non-jumbo, non-brokered and non-public deposits, which together represent all of the deposits at the branches. In addition, Croghan will acquire performing consumer and residential loans associated with the branches. As of September 30, 2011, there were approximately $111.3 million in deposits and $26.2 million in performing consumer and residential loans at the branches. Home Savings also reclassified $1.8 million in fixed assets from premises and equipment to other assets on the balance sheet at the time of the announcement. Croghan anticipates retaining the Home Savings employees at the branches. The transaction, which is subject to regulatory approval and certain closing conditions, is expected to be completed during the fourth quarter of 2011.
In October 2011, the Investment and Asset/Liability Committees of Home Savings approved the sale of approximately $230.0 million in existing 20-year mortgage-backed securities with a weighted average coupon of 4.30%. The sale of these securities resulted in the recognition of a gain in October of $4.5 million. Proceeds from the sale were reinvested throughout October, in 30-year mortgage-backed securities with a coupon of 4.0%. The Bank also purchased $100.0 million notional value of interest rate caps as part of this strategy to hedge the additional interest rate risk. The caps are for five years and have a strike price of 1.50% on 3 month LIBOR.