German American Bancorp, the parent company of German American Bank, has signed a definitive agreement to acquire Citizens First in a deal values at nearly $68.2m.
The acquisition will see the merger of Citizens First’s subsidiary bank Citizens First Bank into German American Bank.
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Citizens First acquisition: Details
Under the terms of the cash-and-stock deal, Citizens First common shareholders will receive 0.6629 shares of German American common stock and a cash payment of $5.80 against each share.
Overall, German American would issue around 1.7 million shares and pay nearly $16m in cash.
Established in 1999, Citizens First is bank holding company with branch offices across multiple counties in Kentucky and a loan production office in Tennessee.
As of 31 December 2018, Citizens First had $476m in total assets, $372m in loans and around $389m in deposits.
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By GlobalDataAs a part of the merger, one Citizens First board member is expected to join German American board.
German American chairman and CEO Mark Schroeder said: “Citizens First has built a solid and growing community banking franchise through which German American can provide our extensive offerings of banking, insurance, and investment products and services to Citizens First’s current and prospective clients.
“The acquisition furthers our expansion into vibrant Kentucky markets and strengthens our local presence in the Bowling Green market area, which has demonstrated a history of dynamic growth and prosperity.”
The Citizens First acquisition is expected to close in the third quarter of this year, subject to regulatory and Citizens First shareholders’ approvals and other conditions.
Based in Indiana, German American operates 65 branches. At 31 December 2018, German American has total assets of nearly $3.9bn, total loans of approximately $2.7bn, and total deposits of approximately $3.1bn.
