American Founders Bank in Lexington, Ky., has agreed to sell itself to a real estate developer.
William Butler, chairman of Corporex Cos., will pay an undisclosed amount for American Founders in a transaction that will involve the bank's parent company, Financial Holdings Inc., going through bankruptcy court. The transaction is expected to close in the third quarter.
Butler said in a press release Wednesday that American Founders and Barry Brauch, the bank's chief executive, will relocate to Louisville, Ky. Trish Osborn, the bank's Louisville market president, will become chief banking officer.
The $293 million-asset American Founders recently agreed to sell three branches, $164 million in deposits and $125 million in performing loans to City Holding in Charleston, W.Va.
"I love Louisville and have many fond memories of successful relationships there," Butler said in a press release Wednesday. "I am excited with the prospect to return and be a part of the community once again.... The new American Founders Bank of Louisville will have unique corporate and commercial real estate business expertise and will be positioned to execute a full-service growth strategy."