Stock Yards in Kentucky to buy market rival
Stock Yards Bancorp in Louisville, Ky., has agreed to buy King Bancorp in Louisville.
The $3.3 billion-asset Stock Yards said in a press release Wednesday that it will pay $28 million in cash for the $195 million-asset parent of King Southern Bank. The deal is expected to close in the second quarter.
King has five branches, $168 million in loans and $126 million in deposits. Two of the branches are in a county 60 miles away from Louisville.
“We are excited about the opportunity this transaction presents to expand our market share in greater Louisville … and extend our reach to new markets in the towns of Bloomfield and Chaplin,” James Hillebrand, Stock Yard’s CEO, said in the release.
“Our two companies share a unique alignment of core philosophies, values and ambitions that should make the integration process simple and, for King's customers, seamless and transparent,” Hillebrand added. “We look forward to serving these customers with a broader array of products, capabilities and resources.”
Stock Yards said it expects the deal to produce mid-single-digit earnings per share accretion when fully integrated.
James King III, King’s president and CEO, will join Stock Yards after the deal is completed.
Banks Street Partners and Stoll Keenon Ogden advised Stock Yards. Sandler O'Neill and Frost Brown Todd advised King.