Jasper, Ind.-based German American Bancorp is expanding in Ohio by merging with Whitehall-based Heartland BancCorp in a $330 million, all-stock deal.
As of June 30, the $1.9 billion Heartland Bancorp had 20 branches, $1.5 billion in loans and $1.6 billion of deposits. The combined organization will have $8.1 billion in assets and 95 branches in southern Indiana, central and northern Kentucky along with central and southwest Ohio.
Heartland Bancorp subsidiary Heartland Bank will be merged into German American’s subsidiary, German American Bank, and operate under a co-branded name within the Ohio markets.
German American Chair and CEO Neil Dauby said the merger “will bring together two high-performing, community-oriented organizations and expand German American’s footprint into Columbus and Cincinnati, two of the most vibrant and fastest-growing markets in the Midwest.
The deal, which is expected to close in the first quarter of 2025, is expected to be accretive to German American’s earnings per share during the 12 months following completion of the merger.
Heartland Chair, President and CEO Scott McComb said the merger “allows us to partner with another like-minded, larger community bank that enables us to continue our strong brand and growth trajectory within the markets we serve. It will also allow us to deepen and broaden our current and prospective customer relationships with enhanced financial service offerings.”
McComb is expected to join the German American Bancorp and German American Bank boards while members of the Heartland executive and senior teams will stay on as regional management.
New York City-based Keefe, Bruyette & Woods served as financial adviser on the transaction to German American, while Indianapolis-based Dentons Bingham Greenebaum LLP provided legal counsel. St. Petersburg, Fla.-based Raymond James & Associates, Inc., served as the financial adviser to Heartland, while Richmond, Va.-based Hunton Andrews Kurth LLP provided legal counsel.