Ohio Bank Buying Union/Waterfield

Sky Financial Group, Bowling Green, Ohio, has agreed to purchase Union Federal Bank of Indianapolis, and its parent company, Waterfield Mortgage, for $330 million in stock and cash.A spokesman for Sky said the company will not purchase much in the way of mortgage banking assets belonging to Waterfield. In mid-January, American Home Mortgage, Melville, N.Y., agreed to buy most of Waterfield's production offices, with its $19 billion in residential servicing rights reportedly going to Citigroup. (The Citigroup part of the transaction has not been confirmed, and both parties refuse to comment.) Union Federal, the fourth-largest bank in the state, has 44 full-service centers. The sale includes Waterfield's insurance and settlement services divisions. Sky can be found on the Web at http://www.skyfi.com.