Star Banc Corp. is looking for more acquisition opportunities similar to its deal to buy Trans Financial Inc., chairman and chief executive officer Jerry A. Grundhofer said Monday.
But any future mergers would have to add to earnings immediately, as Trans Financial will, Mr. Grundhofer added.
Cincinnati-based Star Banc announced plans Friday to acquire $2.2 billion-asset Trans Financial through a stock swap valued at $696 million, or 4.3 times the Bowling Green, Ky.-based bank's book value. The merger is expected to close during the third quarter.
Mr. Grundhofer said he pursued Trans Financial because the deal would boost Star Banc to the No. 3 market position in Kentucky and move the $14.8 billion-asset Star Banc into Tennessee for the first time.
"This was very, very important to us strategically," he said.
Under the terms of the deal, Star Banc would exchange 0.9003 per share of its stock for each share of Trans Financial, a deal worth $57 per share based on Star Banc's April 9 closing share price of $63.3125.
Star Banc bought Great Financial Corp. of Louisville, Ky., in February.
Mr. Grundhofer would not say where the company would seek its next acquisition. But Eric Rothman, a bank analyst at Stephens Inc., said he expects Star Banc to build its position in markets where it already has a presence.
Star Banc has operations in Ohio, Kentucky, and Indiana.
