Stock Yards Bancorp in Louisville, Ky., has agreed to acquire Kentucky Bancshares, Inc., and its subsidiary Kentucky Bank, in a cash and stock deal worth $190 million.
Paris-based Kentucky Bancshares had $1.2 billion in assets, $767 million in loans, $979 million in deposits and $114 million in tangible common equity as of Dec. 31. It operates 19 branches in the Lexington, Ky., area., and has a wealth management and trust department with total assets under management of $258 million.
“We are thrilled to welcome Kentucky Bancshares and its employees to the Stock Yards team,” said James Hillebrand, chairman and CEO of Stock Yards Bancorp. “This transaction expands our presence into the attractive central Kentucky market and represents a complementary fit, both strategically and culturally, with our business model.”
Louis Prichard, president and CEO of Kentucky Bancshares, is joining Stock Yards as central Kentucky market president.
“Stock Yards is an excellent match for us,” Prichard said. “This combination allows us to partner with a strong community bank that is focused on providing outstanding customer service, a deep commitment to the communities they serve and offers an excellent environment for our employees.”
Two Kentucky Bancshares directors will also join the Stock Yards board: Shannon B. Arvin, president and CEO of Keeneland Association, Inc. and Edwin S. Saunier, president of Saunier North American, Inc.
The combined franchise will have 63 branches with $5.9 billion in assets, $4.3 billion in gross loans, $5 billion in deposits and over $4.1 billion in trust assets under management.
First full year earnings per share accretion is estimated at approximately 12.5 percent and the tangible book value per share dilution is expected to be earned back in approximately 2.5 years.
Keefe Bruyette & Woods, A Stifel Company, served as financial advisor and Frost Brown Todd PLLC acted as legal counsel to Stock Yards Bancorp, Inc. Raymond James served as financial advisor and Stoll Keenon Ogden PLLC acted as legal counsel to Kentucky Bancshares, Inc.