Adding to the recent string of small-bank acquisitions, German American Bancorp Inc. in Jasper, Ind., is purchasing American Community Bancorp Inc.
The $1.3 billion-asset German American said Monday that it agreed to acquire American Community in Evansville, Ind., in a cash-and-stock deal priced at about $30 million.
Shareholders of the $312 million-asset American Community are expected to receive 0.725 share of German American common stock for each share owned, plus $2 in cash per share. Based on German American's closing price Monday, the deal represents a 41% premium to American Community's stock price.
Mark A. Schroeder, the chairman and chief executive of German American, said in a press release that buying the 10-year-old bank would allow German American to enhance its presence in Evansville, which is an hour away from its headquarters.
German American entered that market in May 2010 with the purchase of bank branches from Farmers State Bank in Alto Pass, Ill.
"This merger positions German American with a total of five strategic offices in the Evansville market and increases our deposit market share in that market to No. 4," Schroeder said in the release.
The transaction is expected to be completed near the end of 2010 or in early 2011.