Citizens First to merge with German AmericanFebruary 22, 2019
From Local Sources
JASPER — German American Bancorp Inc. and Citizens First Corporation, Bowling Green, Kentucky, announced Thursday that they have entered into a definitive agreement to merge Citizens First into German American. Upon completion of the transaction, Citizens First’s subsidiary bank, Citizens First Bank Inc., will be merged into German American’s subsidiary bank, German American Bank.
Under terms of the definitive agreement, Citizens First common shareholders (excluding 401(k) shareholders) will receive a fixed exchange ratio of 0.6629 shares of German American common stock for each share of Citizens First in a tax free exchange, and a cash payment of $5.80 per Citizens First share. Shareholders who hold Citizens First common shares in the Citizens First Bank 401(k) Profit Sharing Plan will receive a cash payment equal to $5.80 plus the exchange ratio multiplied by the 20-day volume weighted average price of German American’s common shares on the second day prior to closing.
After completion of the merger, it is anticipated that one board member of Citizens First will join the board of German American. In addition, German American will add M. Todd Kanipe, president and CEO of Citizens First, as a regional president in the combined institution, as well as all three of the additional Citizens First executive officers in regional roles similar to their current positions.
Based upon the $31.59 per share closing price of German American’s common shares ending on February 20, 2019, the transaction has a value of $26.74 per Citizens First common share.
Based on the number of Citizens First common shares expected to be outstanding at closing, German American would issue approximately 1.7 million shares of its common stock, and pay approximately $16 million cash, for all of the issued and outstanding common shares of Citizens First. Based upon the $31.59 per share price of German American’s common shares ending on February 20, 2019, the transaction has an aggregate indicated value of approximately $68.2 million, with the total merger consideration being split between stock and cash.
“We are excited to welcome Citizens First customers and team members to the German American family,” said Mark A. Schroeder, chairman and CEO of German American. “Citizens First has built a solid and growing community banking franchise through which German American can provide our extensive offerings of banking, insurance, and investment products and services to Citizens First’s current and prospective clients. The acquisition furthers our expansion into vibrant Kentucky markets and strengthens our local presence in the Bowling Green market area, which has demonstrated a history of dynamic growth and prosperity.”
The transaction is expected to be completed in the third quarter of 2019.
See the full announcement at http://ir.germanamerican.com/News.
More on DuboisCountyHerald.com
Ferdinand’s 18th Street Park will once again transform into a medieval land this weekend for...
Jasper High School freshmen Jane Franklin and Madison Kinder both love to bake. To them, a...
The individual schools in the Northeast Dubois County School Corporation could all have new...
Years ago, Paul Daily lived life much like an untrained horse. He bucked. He kicked. He...
Forest Park High School sophomore Wyatt Fleck plunged a pickaxe into the ground near the...
Several local Girl Scout troops gathered outside Redeemer Lutheran Church in Jasper Monday...
Digging into old documents and scouring through the past, Rosie Stewart does most of her work...
Former Ferdinand resident Melissa Taylor recently achieved a personal goal of visiting all 50...