German American Bancorp and Heartland BancCorp $330 Million Merger
Key Points:
- Merger Agreement:
- Companies Involved: German American Bancorp (parent of German American Bank) and Heartland BancCorp (parent of Heartland Bank).
- Deal Value: $330 million.
- Structure: All-stock transaction.
- Resulting Entity:
- Assets: Over $8.1 billion.
- Branches: 95 across Central and Northern Kentucky, Central and Southwest Ohio, and Southern Indiana.
- Branding: Heartland Bank will be merged into German American Bank and operate under a co-branded name in Ohio.
- Share Exchange:
- Heartland Shareholders: Receive 3.9 shares of German American common stock for each share of Heartland stock.
- Retirement Plan Shares: Exchanged for an equivalent cash amount.
- Tax Implications: The share exchange is tax-free for Heartland shareholders.
- Strategic Expansion:
- Expands German American’s footprint into Columbus and Cincinnati, Ohio, which are key growth markets in the Midwest.
- Financial Impact:
- Expected to be materially accretive to German American’s earnings per share within 12 months post-transaction.
- Quick tangible book value earn-back period anticipated.
- Leadership:
- Scott McComb, Heartland’s Chairman, President, and CEO, will join the boards of German American Bancorp and German American Bank.
- Industry Context:
- Part of a larger trend of US community bank mergers, including recent deals by Renasant Corporation and WesBanco.
