German American Bancorp., in Jasper, Ind., is buying Citizens Union Bancorp of Shelbyville, Inc., in a cash and stock deal worth $154 million. After the deal closes in first quarter 2022, the combined company would have $6.4 billion in assets and 83 offices in 19 counties in Indiana and 15 counties in Kentucky.
“This merger with Citizens Union represents another important, strategic opportunity for German American, and enhances our presence in the vibrant Louisville, Kentucky metropolitan market area,” said Mark Schroeder, chair and CEO of German American. “Our combined operations in the broader Louisville market area places us in a top 10 market share position in the largest metropolitan market area in the Commonwealth of Kentucky.”
The deal will be materially accretive to German American’s earnings per share during the twelve months following completion of the transaction, and it will have a tangible book value earn back period of less than three years, Schroeder added.
The $5.3 billion German American currently has 50 offices in Indiana and 16 in Kentucky. The $1.1 billion Citizens United currently has 16 offices in Kentucky, including its headquarters in Shelbyville.
“Strategically and culturally, we are exceptionally well aligned with German American’s commitment to their community banking business model centered on delivering exceptional customer service and on a willingness to invest in the local communities they serve,” said CUB CEO David Bowling. “German American’s reputation, financial strength and operational capabilities will provide tremendous value to our customers, employees, communities and shareholders.”
Piper Sandler & Co. served as financial advisor on the transaction to German American and Dentons Bingham Greenebaum LLP served as legal counsel.
ProBank Austin served as financial advisor on the transaction to CUB and Frost Brown Todd LLC served as legal advisor.