German American to Acquire Kentucky Bank

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(Image courtesy of German American Bancorp) (Image courtesy of German American Bancorp)
JASPER -

Jasper-based German American Bancorp Inc. (Nasdaq: GABC) has announced plans to acquire First Security Inc. in Kentucky, the parent of First Security Bank. The cash and stock deal, valued at $101 million, remains subject to regulatory and shareholder approvals and is expected to close in the fourth quarter.

Once the acquisition is complete, First Security Bank will merge into the German American Bank brand. Per the terms of the agreement, First Security shareholders will receive 0.7982 shares of German American common stock for each share of First Security stock they own, as well as a cash payment of $12 per First Security share. 

Mark Schroeder, chief executive officer of German American, says the merger provides a strategic opportunity for the bank to expand into the Owensboro, Bowling Green and Lexington, Kentucky markets. 

"First Security has built a solid community banking franchise in these three distinct Kentucky markets in which German American can provide our extensive offerings of banking, insurance, and investment products and services to First Security’s current and prospective clients," Schroeder said in a news release. "The combination of our two organizations provides an important entrance for German American into three of the largest Kentucky metropolitan market areas, and enhances German American’s existing presence in the Evansville, Indiana metropolitan market area."

As part of the deal, a board member of First Security is expected to join the German American board. First Security CEO Michael Beckwith will also remain with the bank in the newly-created role of Kentucky divisional president.

The deal follows German American's announcement earlier this week that it had completed its acquisition of five bank branches from Cincinnati-based First Financial Bancorp (Nasdaq: FFBC). 

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