JASPER, Ind., May 21, 2018 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (NASDAQ: GABC ) has announced its banking subsidiary, German American Bank (“German American”) has completed the acquisition of the five branch network in Columbus and Greensburg, Indiana from First Financial Bank (formerly MainSource Bank) (“First Financial”).
The transfer of approximately $175 million in deposits and $120 million in loans was finalized as of the close of business on Friday, May 18 th . In connection with the closing of the transaction, German American paid a premium on deposits assumed of approximately $7.4 million, which is subject to a “true-up provision whereby the deposit premium shall be recalculated on the six month anniversary of the transfer. Additionally, German American has a 6-month “put-option” on the loans purchased, whereby German American can require First Financial to repurchase certain loans within six months following the closing of the transaction.
Mark A. Schroeder, German American’s Chairman & CEO, stated, “We are extremely pleased to welcome the Columbus and Greensburg customers and employees to German American. Effective with opening of business on Saturday, May 19 th , all these branches began operating as German American branches with our community-focused, customer-first philosophy. All the employees at these offices remain intact, so customers can take comfort in knowing they will be able to continue to do business with the same individuals they always have. We’re excited for the opportunity to show customers and prospective customers the many benefits of banking with German American, and we look forward to continuing to grow our presence in both Columbus and Greensburg in the coming months and years.”
Raymond James & Associates, Inc. served as German American’s financial advisor and Bingham Greenebaum Doll LLP serves as German American’s legal counsel on the transaction.
About German American
German American Bancorp, Inc., is a NASDAQ-traded (symbol: GABC) bank holding company based in Jasper, Indiana. German American, through its banking subsidiary German American Bancorp, operates 58 banking offices in 20 contiguous southern Indiana counties and one adjacent northern Kentucky county. The Company also owns an investment brokerage subsidiary (German American Investment Services, Inc.) and a full line property and casualty insurance agency (German American Insurance, Inc.).
Forward-Looking Statements
This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “anticipate”, “believe”, “estimate”, “expect”, “plan”, “intend”, “should”, “would”, “could”, “can”, “may”, “will”, “might”, or similar expressions. These forward-looking statements are based on current plans and expectations, which are subject to a number of risk factors and uncertainties that could cause future results to differ materially from historical performance or future expectations. These differences may be the result of various factors, including, among others: disruptions to the parties’ businesses as a result of the announcement and pendency of the branch acquisition; costs or difficulties related to the integration of the business of the acquired branches following the closing of the transaction; the risk that the anticipated benefits, cost savings and any other savings from the transaction may not be fully realized or may take longer than expected to realize; the unknown future direction of interest rates and the timing and magnitude of any changes in interest rates; changes in competitive conditions; the introduction, withdrawal, success and timing of asset/liability management strategies or of mergers and acquisitions and other business initiatives and strategies; changes in customer borrowing, repayment, investment and deposit practices; changes in fiscal, monetary and tax policies; changes in financial and capital markets; potential deterioration in general economic conditions, either nationally or locally, resulting in, among other things, credit quality deterioration; capital management activities, including possible future sales of new securities, or possible repurchases or redemptions by the Company of outstanding debt or equity securities; risks of expansion through acquisitions and mergers, such as unexpected credit quality problems of the acquired loans or other assets, unexpected attrition of the customer base of the acquired institution or branches, and difficulties in integration of the acquired operations; factors driving impairment charges on investments; the impact, extent and timing of technological changes; potential cyber-attacks, information security breaches and other criminal activities; litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory agencies, whether pending or commencing in the future; actions by the Board of Governors of the Federal Reserve System; changes in accounting principles and interpretations; potential increases of federal deposit insurance premium expense, and possible future special assessments of Federal Deposit Insurance Corporation premiums, either industry wide or specific to German American Bancorp; the expected impact of the U.S. tax regulations passed in December 2017; actions of the regulatory authorities under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Federal Deposit Insurance Act and other possible legislative and regulatory actions and reforms; and the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends.
For additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements, please see German American’s Annual Report on Form 10-K for the year ended December 31, 2017. It is intended that these forward-looking statements speak only as of the date they are made. German American does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.
For additional information, contact:
Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
Source: German American Bancorp, Inc.
