Community Bank Shares of Indiana (CBIN) in New Albany has agreed to buy First Financial Service (FFKY) in Elizabethtown, Ky.

Community Bank Shares will pay about $18 million in stock, or $22.33 a share, and will redeem about $12.3 million of First Financial's preferred stock from the Troubled Asset Relief Program. Community Bank Shares also said it would buy about $25 million of its own stock back from investors prior to completing the acquisition, at $22.33 a share.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.