City Holding agrees to buy pair of Kentucky banks
City Holding in Charleston, W.Va., has agreed to buy two banks in Kentucky.
The $4.2 billion-asset company said in a press release Wednesday that it will pay $93.5 million in stock for Poage Bankshares in Ashland and $24.9 million in cash for Farmers Deposit Bancorp in Cynthiana. The deals are expected to close the fourth quarter.
Poage has $450 million in assets, while Farmers Deposit has $122 million.
The deals are expected to strengthen City’s operations in Lexington, Ky., and Huntington, W.Va.
“Our leadership recognized these partnerships as strategic next steps for enhancing our market presence throughout Kentucky and we are fortunate to be making this move forward,” Skip Hageboeck, City’s president and CEO, said in the release.
Bruce VanHorn, Poage’s president and CEO, will enter into an employment agreement with City.
Stilwell Group, a New York investment firm that takes activist stakes in community banks, owns about 9.7% of Poage's stock. The firm, which paid about 65% of book value for its initial stake in 2011, reached a compromise in 2015 that placed a representative on Poage's board.
Keefe, Bruyette & Woods and Dinsmore & Shohl advised City. Sandler O’Neill and Luse Gorman advised Poage. ProBank Austin and Stites & Harbison advised Farmers Deposit.