Heritage Bank Inc. in Erlanger, Ky., has agreed to buy Farmers National Bank in Walton, Ky., in what would be the first acquisition in Heritage’s 21-year history.
The deal, first reported Friday by the Business Courier in Cincinnati, will expand Heritage’s reach into Alexandria, Ky., and Independence, Ky., markets the $381 million-asset bank has been trying to enter for a while.
The $80 million-asset Farmers National, meanwhile, was looking to sell due to rising costs of regulations, the Business Courier reported.
Farmers National recorded $150,000 in income at Sept. 30, down about 11% from a year earlier, according to data from the Federal Deposit Insurance Corp. The 80-year-old bank’s loans past due jumped from 1.41% a year earlier to 3.23% but it remained well capitalized with a Tier 1 risk-based capital ratio of roughly 14%.
Heritage has 10 branches while Farmers National has five branches, mostly clustered in northern Kentucky south of Cincinnati.
