S.Y. Bancorp (SYBT) in Louisville, Ky. has agreed to buy The Bancorp in La Grange, Ky.
The $2.1 billion-asset parent of Stock Yards Bank & Trust said Thursday that it would pay roughly $7.8 million in cash and $11.7 million in stock for the $137 million-asset Bancorp, which owns The Bank Oldham County.
The deal, which is expected to close in the second quarter, would give S.Y. Bancorp 35 branches and create the largest locally owned community bank in the Louisville area, the companies said in a press release.
"Considering our strong presence in the metropolitan Louisville area, this transaction presents a prudent opportunity to deploy our solid capital base and extend our footprint to the northeast into contiguous Oldham County through the acquisition of a strong franchise with solid asset quality, capital strength and a history of profitability," David Heintzman, S.Y.'s chief executive, said in the release.
"The combination with S.Y. Bancorp will provide greater capital resources and operational scale that will allow us to grow as part of a larger community bank, with more than $2 billion in total assets and the tools and resources to enhance long-term value for our shareholders," Stephen Norton," The Bancorp's chief executive, added.
Stifel Nicolaus and the law firm of Stites & Harbison advised S.Y. on the deal. The Bancorp was advised by Sandler O'Neill and the law firm of Frost Brown Todd.
