Limestone in Ky. to buy four branches from in-state rival
Limestone Bancorp in Louisville, Ky., has agreed to buy four branches from Republic Bancorp in Louisville.
The $1.1 billion-asset Limestone said in a press release Friday that it will also gain $153 million in deposits and $112 million in loans. The deal is expected to close in the fourth quarter.
The branches, in the Kentucky cities of Elizabethtown, Frankfort and Owensboro, “are located in both our existing markets and in nearby contiguous counties,” John Taylor, Limestone’s president and CEO, said in the release. “I am also extremely excited about the talented sales and service staff joining our organization as a result of this acquisition.”
Limestone said it will pay a 6% deposit premium. The company said it should take less than three years to earn back an estimated 9% dilution to its tangible book value.
Limestone also disclosed that it had raised $17 million by issuing subordinated notes in a private placement. The company can redeem the notes beginning July 31, 2024.
Raymond James was the placement agent for the subordinated notes.
Limestone said that $10 million of the proceeds from the issuance went to its bank to support its capital ratios. Another $5 million was used to reduce senior debt.
Janney Montgomery Scott and Wyatt, Tarrant & Combs advised Limestone on the branch acquisition.