German American boosts commitment to Ky. with Citizens First acquisition
German American Bancorp in Jasper, Ind., has agreed to buy Citizens First in Bowling Green, Ky.
The $3.9 billion-asset German American said in a press release Thursday that it will pay $68.2 million in cash and stock for the $476 million-asset parent of Citizens First Bank. The deal is expected to close in the third quarter.
Citizens First has $372 million in loans and $389 million in deposits.
Todd Kanipe, Citizens First’s president and CEO, will become a regional president at German American. One Citizens First director will join German American’s board.
“Citizens First has built a solid and growing community banking franchise through which German American can provide our extensive offerings of banking, insurance, and investment products and services to Citizens First’s current and prospective clients,” Mark Schroeder, German American’s chairman and CEO, said in the release.
“The acquisition furthers our expansion into vibrant Kentucky markets and strengthens our local presence in the Bowling Green market area, which has demonstrated a history of dynamic growth and prosperity,” Schroeder added.
The deal is expected to be accretive to German American’s earnings per share during the 12 months after closing. It should take a year for German American to earn back any dilution to its tangible book value.
Sandler O’Neill and Bingham Greenebaum Doll advised German American. Keefe, Bruyette & Woods and Wyatt, Tarrant & Combs advised Citizens First.