German American Completes Branch Acquisition
Jasper-based German American Bancorp Inc. (Nasdaq: GABC) has completed the acquisition of five branches in Columbus and Greensburg from Cincinnati-based First Financial Bancorp (Nasdaq: FFBC). The deal was a condition of the $1 billion merger between First Financial and MainSource Financial Group Inc. in Greensburg, which was completed in April.
The five branches are now operating under the German American brand and Chief Executive Officer Mark Schroeder says all employees at the branches will remain in place. First Financial transferred approximately $175 million in deposits and $120 million in loans to German American to finalize the deal.
German American says it paid a $7.4 million premium on the deposits, which is subject to a "true-up" provision, which means the premium will be recalculated on the sixth month anniversary of the deal. The bank also has a six-month "put-option" on the loans it purchased, which means it can require First Financial to repurchase certain loans within six months.
The branches included in the acquisition are:
- Greensburg Plaza, 304 E 10th Street, Greensburg
- Columbus Downtown, 529 Washington Street, Ste 100, Columbus
- Columbus Drive Thru, 803 Washington Street, Columbus
- Columbus North, 1901 25th Street, Columbus
- Columbus West, 2310 W Jonathan Moore Pike, Columbus
Schroeder says German American plans to continue to grow its presence in Columbus and Greensburg in the coming months and years.