By Jeff McKinney
The Cincinnati Enquirer

Peoples Community Bancorp Inc. of West Chester said Tuesday that it has agreed to buy a 38 percent stake in Clifton's Columbia Bancorp Inc.

The purchase of 69,925 shares of the parent of Columbia Savings Bank in Clifton for about $2.5 million would give Peoples the second-largest block of stock in Columbia, which has one branch and assets of $60 million. The Reckman family, with ties to Cincinnati, is the largest shareholder.

Peoples, with assets of $822.5 million and 13 Southwest Ohio branches, bought three local financial institutions and two branches from an Indiana bank in the last four years.

In a filing with the Securities and Exchange Commission, Peoples also said it has approval to sell more than 1.36 million shares for $20 a share in a rights offering. The bank plans to buy 150,000 shares as part of its employee stock plan. The offering to the public expires April 20.

Peoples also plans to begin paying its first-ever quarterly dividend of 15 cents a share next quarter.

E-mail jmckinney@enquirer.com