As per the merger terms, Victory Bancorp will be issued 58,934 shares of Heartland plus $35.5m in cash in exchange of all its shares
Heartland BancCorp signs merger deal with Victory Bancorp. Photo: courtesy of Gerd Altmann/Pixabay.
Heartland BancCorp, the parent company of Ohio-based Heartland Bank, has agreed to acquire Victory Bancorp, the holding company of Victory Community Bank, in a stock-cum-cash deal worth around $41.1m.
Victory Community Bank is a federal savings association with a main office in Ft. Mitchell, Kentucky. The 16-year old community bank, which focuses on residential mortgage lending, serves the Northern Kentucky and Greater Cincinnati area.
The bank had assets of $179m, loan portfolio of $154m, and deposits of $137m, as of 30 September 2019. Victory Community Bank operates three banking locations in Boone, Kenton and Campbell counties in Kentucky.
The bank’s sister company, Victory Mortgage has signed a cooperation agreement with Heartland Bank for certain services and products, as part of the merger. Affiliated with Fischer Homes, Victory Mortgage has mortgage lending offices across Louisville, Columbus, Indianapolis and Atlanta.
Heartland BancCorp chairman and CEO Scott McComb said: “This transaction expands Heartland’s presence in the attractive Northern Kentucky and Cincinnati markets and represents a complementary fit, both strategically and culturally, with Heartland’s business model.
“Victory’s strong non-interest income generation complements our own strategies and its loan portfolio provides diversity to our balance sheet. The combination of our two organizations provides the opportunity to create efficiencies and enhance the value of the combined company while offering Victory customers a broader product offering, increased lending limits and an expanded branch delivery system.”
Heartland Bank, which was established in 1911, offers commercial, small business, and consumer banking services, financial planning services, and other financial products and services.
Terms of the Heartland BancCorp, Victory Bancorp merger
Victory Bancorp will be issued 58,934 shares of Heartland plus $35.5m in cash in exchange of all its shares, as per the merger terms.
The enlarged bank holding company Heartland BancCorp post-merger will hold nearly $1.32bn in assets. Victory Community Bank will be merged with Heartland Bank with the latter to be the surviving bank.
Victory Community Bank president and CEO John G. “Jack” Kenkel, Jr. said: “Being able to partner with a strong community bank that is focused on providing great customer service and has a deep commitment to the communities where it operates, is a great opportunity for us.
“We look forward to partnering our mortgage business with Heartland for years to come.”
Subject to the receipt of all regulatory approvals and other customary closing conditions, the merger is expected to be closed early in the second quarter of 2020.