First Capital in Corydon, Ind., has agreed to buy Peoples Bancorp Inc. of Bullitt County in Shepherdsville, Ky.
The $473 million-asset First Capital said in a press release Thursday that it will pay $29.5 million in cash and stock for the $239 million-asset parent of Peoples Bank of Bullitt County. The deal, which will give First Capital its first Kentucky branches, is expected to close in the fourth quarter.
Peoples' shareholders may receive an additional cash payment if the bank sells certain specified assets before the merger is completed, or if First Capital sells the assets within two years of closing. First Capital did not provide additional details on the assets.
Peoples Bank has five branches, $60 million in loans and $208 million in deposits.
"We are extremely excited to partner with Peoples and announce our entry into Kentucky," William Harrod, First Capital's president and chief executive, said in the release. "We believe that this partnership with Peoples and the resulting expansion of our footprint into Kentucky presents an opportunity to utilize our capital and grow our community-focused franchise in a market we understand and believe fits our organization and values."
Raymond James and Krieg DeVault advised First Capital. Professional Bank Services and Frost Brown Todd advised Peoples.
