S.Y. Bancorp Inc. of Louisville announced Thursday that it had agreed to buy 9.9% of Indiana Business Bank, an Indianapolis start-up expected to open by yearend.
Two months ago the $1.1 billion-asset parent company of Stock Yards Bank and Trust opened its first branch in Indianapolis, with a focus on private banking. David Heintzman, S.Y.'s president, said in an interview Thursday that investing in Indiana Business Bank would increase his company's visibility in Indianapolis and enhance its private banking strategy.
S.Y. would own 138,600 shares priced at $10 each. The deal needs regulatory approval and S.Y. has to complete an offering to raise money for the purchase.
S.Y. has also agreed to participate in loans exceeding Indiana Business Bank's lending limits. S.Y. would also have representation on the start-up's board.
