Cincinnati Bancorp has agreed to a merger with Kentucky Federal Savings and Loan Association in Covington, Ky.
The $171 million-asset Cincinnati Bancorp said in a press release late Wednesday that it will issue additional shares of common stock at closing to the mutual holding company equal to Kentucky Federal’s estimated market value.
The transaction is expected to close in the second half of this year.
Philip Wehrman, Kentucky Federal's chairman, is expected to join Cincinnati Bancorp’s board.
“We expect the transaction will provide us with an excellent platform to grow and diversify our franchise in new, contiguous markets with similar economic and demographic characteristics to our existing markets,” Robert Bedinghaus, Cincinnati Bancorp’s executive chairman, said in the release.
The merger is expected to be immediately accretive to Cincinnati Bancorp’s 2018 earnings and tangible book value per share.
Luse Gorman and RP Financial advised Cincinnati Bancorp. Vorys, Sater, Seymour & Pease and Keller & Co. advised Kentucky Financial.