Hoosier Banks Announce Merger

Posted: Updated:
The institutions have a combined 245 years in business. The institutions have a combined 245 years in business.
JASPER -

Jasper-based German American Bancorp Inc. (Nasdaq: GABC) has announced an agreement to acquire River Valley Bancorp. (Nasdaq: RIVR), which is headquartered in Madison. The deal is valued at $83.5 million.

Under the agreement, River Valley will merge into German American. The deal is a mix of stock and cash considerations and involves the issue of approximately 1.94 million shares of River Valley common stock and pay around $25 million in cash.

The companies say the value of the transaction will fluctuate with the market until the deal is closed, which is expected to be early next year.

German American Chairman and Chief Executive Officer Mark Schroeder says "this merger with River Valley represents a strategic opportunity for German American to enhance our previously stated objective of expanding our Southern Indiana footprint into the vibrant Southeast Indiana market area. River Valley has built a solid community banking franchise in three distinct markets in which German American can provide our extensive offerings of banking, insurance, and investment products and services to River Valley's current and prospective clients."

River Valley Chief Executive Officer Matthew Forrester says "we believe German American is an ideal partner for our bank, and we are delighted to become a part of German American's organization. Like River Valley, German American is deeply committed to the communities it serves and through this combination of our two community-focused organizations, we will be in a position to better serve our customers through increased convenience as well as the addition of broader financial services."

German American's retail banking office presence covers more than three dozen locations in 13 southern Indiana counties. It also has a brokerage and financial planning subsidiary and a full service property and casualty insurance agency. River Valley has 14 banking offices in Indiana and Kentucky.

  • Perspectives

    • How to Find a New Audience After Hitting a Marketing Plateau

      It may sound like a marketer’s dream scenario: efforts have proven to be so successful it appears a company has completely saturated their target audience. While it may be a good problem to have, it still may be a problem. Hitting a marketing plateau is an opportunity for companies in any industry to reevaluate, re-energize and come to the table with new ideas for better understanding existing customers and engaging new audiences.

    More
  • Most Popular Stories

    • (image courtesy of The Times of Northwest Indiana)

      Crews Start Demolition of Carson's in Hammond

      The face of downtown retail in Hammond is changing once again with the demolition of Carson’s department store, the one-time the anchor of Woodmar Mall. Our partners at The Times of Northwest Indiana report excavating crews have started to demolish the last vestige of the shopping center which stood since the 1950s. 

    • Some 'Emerging Ethical Dilemmas' Already Here

      An annual list of emerging ethical dilemmas and policy issues in science and technology has been released by the John J. Reilly Center for Science, Technology, and Values at the University of Notre Dame. It includes robotic clergy, a crime reporting app and facial recognition technology that could read emotions.

    • (image courtesy of The Times of Northwest Indiana)

      U.S. Steel Cuts Jobs, Low Price Imports Partially to Blame

      Pittsburgh-based U.S. Steel has announced it will idle its tin mill operations in East Chicago, affecting nearly 300 workers, half of which will lose their jobs. Our partners at The Times of Northwest Indiana report U.S. Steel blames the layoffs on the Del Monte food company which announced its own mass layoffs. 

    • UPDATE: Nestl√© Details Fort Wayne Layoffs

      Virginia-based Nestlé USA says only 40 employees will be laid off at the company's Fort Wayne distribution center. A spokesperson for Nestlé tells Inside INdiana Business a WARN Notice filed with the state incorrectly stated the facility would close at the end of the year, affecting nearly 70 workers.

    • (Photo courtesy Batesville Tool & Die)

      Batesville Tool & Die Acquires Tipton Company

      Batesville Tool & Die is adding to its portfolio. The metal stamping manufacturer has acquired a majority interest in Tipton-based DC Coaters LLC. Financial terms of the deal are not being disclosed.