Your Community Bankshares in New Albany, Ind., has agreed to sell its branch in Munfordville, Ky., to Citizens Bank.
The $30.2 million-asset Citizens, in Hartford, Ky., agreed to pay a 1.77% premium for the branch's average daily balance of assumed deposits for the ten days prior to the closing date. The branch held $28.6 million in deposits, as of June 30, according to the Federal Deposit Insurance Corp.
Additionally, Citizens will pay $260,000 for the branch premises and an amount equal to the net book value of the personal property as of Oct. 1. Citizens will not acquire loans attached to the branch. The sale is expected to close by the second quarter.
The $1.6 billion-asset Your Community acquired the Munfordville branch in January, as part of its acquisition of First Federal Savings Bank of Elizabethtown.
Your Community projects the Kentucky branch sale will produce about $200,000 in yearly noninterest expense savings. In November, Your Community announced plans to close a branch in Louisville, Ky.; a drive-through branch in New Albany; and the closure of the walk-in lobby portion of a branch in Radcliff, Ky.
Stoll Keenon Ogden was legal counsel to Your Community on the branch sale. Frost Brown Todd was legal counsel to Citizens.