Kentucky banks agree to merge

Stock Yards Bancorp in Louisville, Ky., has agreed to buy Kentucky Bancshares in Paris, Ky., for $190 million in cash and stock.

The deal is expected to close in the second quarter, the companies said in a combined press release Tuesday.

The seller has about $1.2 billion of assets, $767 million of loans and $979 million of deposits.

The combined company would have more than 60 branches, $5.9 billion of assets, $4.3 billion of loans, $5 billion of deposits and about $4.1 billion of trust assets under management.

First full-year earnings per share accretion was estimated at 12.5%, and it should take less than three years for Stock Yards to earn back any dilution to its tangible book value.

“This transaction expands our presence into the attractive central Kentucky market and provides the opportunity to create efficiencies and enhance the value of the combined company,” James Hillebrand, chairman and CEO of Stock Yards, said in release.

Stock Yards's footprint would stretch across the Louisville, Indianapolis and Cincinnati markets.

Louis Prichard, president and CEO of Kentucky Bancshares, would join the company as president of the central Kentucky market.

Two directors from Kentucky Bancshares' board — Shannon Arvin and Edwin Saunier — would also join Stock Yards' board.

For reprint and licensing requests for this article, click here.
M&A Community banking Kentucky
MORE FROM AMERICAN BANKER