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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Since 1933, no depositor has lost a penny of FDIC-insured funds

Decisions on Bank Applications

Westfield Bank, FSB (Proposed)

IN RE: Westfield Bank, FSB (Proposed)
Westfield Center, Median County, Ohio
Application for Federal Deposit Insurance (Savings Association Insurance Fund)


The undersigned, acting under delegated authority, has fully considered all facts and information relevant to the factors of Section 6 of the Federal Deposit Insurance Act relating to the application for federal deposit insurance for Westfield Bank, FSB, (the bank), a proposed new full-service federal savings bank to be located at 6782 Greenwich Road, Westfield Center, Median County, Ohio, and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement, that the application submitted by the bank for federal deposit insurance be approved subject to the following conditions:

1. That beginning paid-in capital funds of not less than $11,000,000 be provided, and that a ratio of Tier 1 Leverage Capital ratio of not less than eight percent shall be maintained throughout the first three years of operation;

2. That any changes in proposed management or proposed ownership (10 percent or more of stock), including new acquisitions of or subscriptions to 10 percent or more of stock, will render this commitment null and void unless such proposal is approved by the Regional Director of the FDIC's Chicago Regional Office (Regional Director) prior to opening of the bank;

3. That federal deposit insurance shall not become effective unless and until the applicant has been established as a federal savings bank that it has the authority to conduct a banking business, and that its establishment and operation as a bank have been fully approved by the Office of Thrift Supervision;

4. That Ohio Farmers Insurance Company and its wholly-owned subsidiary, Westfield Financial Corporation, Westfield Center, Ohio, an insurance and financial services holding company, obtain approval from the Office of Thrift Supervision to acquire voting stock control of the bank prior to its opening;

5. That until the conditional commitment herein granted becomes effective, the FDIC shall have the right to alter, suspend or withdraw said commitment should any interim development be deemed to warrant such action; and

6. That if federal deposit insurance has not become effective within twelve months from the date of this ORDER, or unless, in the meantime, a request for an extension of time has been approved by the FDIC, the consent granted herein shall expire at the end of the said twelve-month period.

Dated at Washington, D.C. this day of January, 2001.


John M. Lane
Associate Director
Division of Supervision


IN RE: Westfield Bank, FSB
Westfield Center, Median County, Ohio
Application for Federal Deposit Insurance (Savings Association Insurance Fund)


Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815), an application for federal deposit insurance with membership in the Savings Association Insurance Fund has been filed on behalf of Westfield Bank, FSB, (the bank), a proposed new federal savings bank to be located at 6782 Greenwich Road, Westfield Center, Ohio.

The bank's sole shareholder will be Westfield Financial Corporation (WFC). WFC is a wholly-owned subsidiary of Ohio Farmers Insurance Company, Westfield Center, Ohio, and it serves as a holding company for certain non-insurance and specialty insurance companies. OFIC is a property and casualty insurer that operates through a network of 11,700 independent insurance agents located throughout Ohio, Pennsylvania, Indiana, Tennessee, Michigan, Illinois, Kentucky, West Virginia, Georgia, Florida, Iowa, South Dakota, North Dakota, Minnesota, and Wisconsin; however, it is licensed to do business in 45 states and the District of Columbia. Ownership of the bank will enable OFIC to offer a wider variety of financial services products to its broad customer base.

The bank, by virtue of having a federal savings bank charter, will be able to exercise full banking services in the fifteen-state area currently served by Ohio Farmers Insurance Company; however, its primary market area will be Indiana and Ohio. Its business plan is to provide traditional deposit and loan products in a somewhat nontraditional fashion. The bank will conduct traditional banking business through its sole full-service office in Westfield Center, Ohio, but it will rely on the U.S. mail system, the Internet, a large network of automated teller machines, and its independent insurance agents to build and service its customer base. In addition, it will originate and service loans though a series of loan production offices. OFIC's network of independent insurance agents will be exploited to advertise the availability of these banking services and to assist potential customers in establishing relationships with the bank.

For the purposes of this proposal, the investment in fixed assets is reasonable, capital is adequate, future earnings prospects are favorable, and management is considered satisfactory. Corporate powers to be exercised are consistent with the purpose of the Federal Deposit Insurance Act. No undue risk to the Savings Association Insurance Fund is apparent.

Accordingly, based upon a careful evaluation of all available facts and information, the Associate Director, pursuant to delegated authority, has concluded that approval of the application is warranted.


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