For Greene County News
TIFFIN — The Old Fort Banking Company and Gillmor Financial Services Inc. announces that the Federal Reserve Bank of Cleveland, acting pursuant to authority delegated by the Board of Governors of the Federal Reserve System, approved the application by The Old Fort Banking Company Employee Stock Ownership and 401(k) Plan-ESOP Component Trust to become a bank holding company by acquiring approximately 45 percent of the common stock of Gillmor Financial Services, and thereby indirectly acquiring control of The Old Fort Banking Company.
The completion of the acquisition and ESOP transaction took place on Dec. 22, 2015.
“What has been accomplished is not only historic, but it has achieved the objectives of many hard-working individuals and assists in preserving a vital community asset. The Old Fort Banking Company. We are not aware of any holding company which was able to take its ESOP from 0 percent to 45 percent in a single, integrated transaction, which is a true testament to our management team, associates, and board of directors,” stated President & CEO Michael C. Spragg.
Today, the ESOP established by The Old Fort Banking Company has a total value of approximately $15 million. The plan is a retirement vehicle that doesn’t require employees to make matching contributions, unlike a 401(k), which the bank also offers its employees. Additionally, there are no taxes paid on any employee’s ESOP earnings until after the employee’s stock is bought out of the plan, either at his or her retirement or when he or she is no longer employed by the bank.
“The ESOP will profoundly influence the way our associates view working at The Old Fort Banking Company,” says Spragg.
The Old Fort Banking Company is an employee owned and operated financial institution. Founded in 1916, by the citizens of the village of Old Fort, the bank continues to build on a strong foundation of excellence.
The Old Fort Banking Company proudly serves Allen, Greene, Hancock, Sandusky, Seneca and Wood Counties, with financial centers in Bettsville, Clyde, Findlay, Fostoria, Fremont, Old Fort, Tiffin and Sugarcreek Township. Old Fort operates a commercial loan production office in Lima and also has a mortgage loan production facility in Xenia. Old Fort is a recognized leader in community banking throughout the area in assisting members of the community, including local businesses and corporations.
Story courtesy of The Old Fort Bank.