Quite a few Indiana banks have formed new alliances with their peers over the last few months. Some have linked up with in-state banks and others have crossed borders into new territories.
Here’s a look at several of the big merger and acquisition announcements.
First Financial Corporation and HopFed Bancorp, Inc. (HFBC), headquartered in Hopkinsville, KY, jointly announced the execution of a merger agreement under which HFBC will merge into First Financial in a cash and stock transaction with an aggregated value of approximately $128.3 million.
“Heritage provides us with an opportunity to leverage our capabilities and expand into new markets,” commented Norman L. Lowery, President and CEO of First Financial.
Horizon Bancorp and Salin Bancshares, a privately held company, announced that they have executed a definitive agreement whereby Horizon will combine with Salin and their subsidiaries will also combine. The transaction has an implied valuation of approximately $135.3 million.
“Horizon is enthusiastic about this merger, as it complements our current Indiana locations and provides entry into the attractive growth markets of Fort Wayne and Columbus,” said CEO Craig M. Dwight.
Peoples Bank announced that it has acquired A.J. Smith Federal Savings Bank of Midlothian, IL in a stock and cash transaction. The acquisition will further expand Peoples Bank’s retail banking network in the South Suburban Chicagoland market, bringing the total number of full-service Banking Centers to 22. The integration of A.J. Smith into the Peoples Bank brand will be completed during the second quarter of 2019.
“Many people commute daily across the state line and, as a community bank, we are uniquely positioned to help our customers be more successful. That is our mission,” said Benjamin Bochnowski, president and CEO of Peoples Bank.
Merchants Bank of Indiana has entered into an agreement to acquire the assets of NattyMac, LLC, a warehouse lender operating out of Clearwater, FL. Specific transaction terms were not disclosed.
Michael F. Petrie, Chairman and CEO of Merchants stated, “Merchants and NattyMac have had a long-standing relationship and funding partnership that has been beneficial to both of our organizations since 2014. We look forward to fully integrating all of NattyMac’s operations under our corporate umbrella.”
Ohio-based Farmers & Merchants Bancorp announced it has completed its merger with Limberlost Bancshares, the holding company for Bank of Geneva based in Geneva, IN. Andrew Briggs, the former Chairman of Limberlost was added to Farmers & Merchants board of directors.
Lars B. Eller, CEO and president of F&M Bank, stated, “This transaction significantly increases F&M’s presence in northeast Indiana. Customers will benefit from our expanded services, while providing the convenience of local decision makers throughout our office network.”
German American Acquires KY-Based Bank
German American Bancorp announced that it has completed its acquisition of First Security Bank, Inc. of Owensboro, KY. First Security’s common shareholders of record will be entitled to receive 0.7982 shares of German American common stock and a cash payment of $12.00 for each of their former shares of First Security common stock.
Mark A. Schroeder, chairman and CEO of German American, stated, “We’re extremely excited about the multiple future organic growth opportunities this merger will afford our company.”
