Articles and Publications

Incentive Compensation Survey Results

Incentive Compensation Plans in Financial Institutions The Newburgh Group along with Milynco Financial recently conducted a survey of thousands of bankers throughout the Midwest and Southeast relative to Incentive Compensation for financial institutions. The respondents were from a solid mixture of banks of all sizes. More than half were from larger banks (over $3 billion in assets). The remainder were fairly spread out amongst the following asset sizes,  $1-$3 Billion (17%), $500 million to $1 billion (15%) and financial institutions less than $500 million (13%). Current Position The...

United Community Bank Acquires Dixon Bank

United Community Bank Acquires Dixon Bank    February 14, 2022 Morganfield Ky --   United Community Bancshares, headquartered in Morganfield KY has closed on the transaction related to the purchase of Dixon Bank, located in Dixon KY which was originally announced on December 1, 2021. Dixon Bank customers will continue to use the current Dixon Bank location until the final conversion is completed in April whereupon United Community’s new office located nearby will become the home for all customers. “The Dixon Bank fits nicely into our market area.  With 3 branches in both Union and Webster...

United Community Bank Acquires Dixon Bank

United Community Bank Acquires Dixon Bank    February 14, 2022 Morganfield Ky --   United Community Bancshares, headquartered in Morganfield KY has closed on the transaction related to the purchase of Dixon Bank, located in Dixon KY which was originally announced on December 1, 2021. Dixon Bank customers will continue to use the current Dixon Bank location until the final conversion is completed in April whereupon United Community’s new office located nearby will become the home for all customers. “The Dixon Bank fits nicely into our market area.  With 3 branches in both Union and Webster...

Dixon Bank- United Community Bank Merger Announcement

News Release Dec 1, 2021 United Community Bank to purchase Dixon Bank Morganfield Ky --   United Community Bancshares, headquartered in Morganfield KY has signed an agreement to purchase Dixon Bank, located in Dixon KY. Pending regulatory approval the acquisition is expected to be completed in the first quarter of 2022 and will bring United Community’s assets to approximately $450 million. Dixon Bank customers will continue to use the current Dixon Bank location until the final conversion is completed in April whereupon United Community’s new office located nearby will become the home for all...

Legence Bank.Texico State Bank Merger

MEDIA RELEASE FOR IMMEDIATE RELEASE: October 15, 2021 Legence Bank Contact: Tricia Johnson, Vice President, Marketing & Communications, 618-841-7868 Texico State Bank Contact: Bridget Potter, President, 618-266-7670 Legence Bank Signs Agreement to Purchase Texico State Bank in Texico, IL Eldorado, IL--Legence Bank, a wholly-owned subsidiary of the holding company First Eldorado Bancshares, Inc. in Eldorado, IL, signed an agreement, on October 15, 2021, to purchase Texico State Bank for an undisclosed sum. The transaction is pending customary regulatory approval. The terms of the agreement...

Bank Director M & A Survey Results 2020

Bank Director 2020 Bank M & A Survey Results Key Findings Include: Acquisition Strategies Forty-four percent of survey respondents expect to acquire a bank in 2020. Most (60%) expect to be opportunistic acquirers that will focus on organic growth. Most, at 68%, point to achieving expected cost savings and revenue synergies with an acquisition. 58% percent point to earnings per share accretion with 56% expecting profitability to improve going forward. A little more than half (51%) say that retaining key personnel is a good measure of success. One fourth expect to be active acquirors in...

KY Bank Transaction, First in State 2020

First State Bank to Acquire Inez Deposit Bank     September 25, 2020 - First State Bancorp, Inc., an Ohio corporation, and its wholly-owned subsidiary, First State Bank, a state-chartered community bank headquartered in Winchester, Ohio, are pleased to announce the signing of a definitive agreement to acquire Community Holding Company, a Kentucky corporation, and bank holding company, and its subsidiary, Inez Deposit Bank, a state-chartered commercial bank headquartered in Inez, Kentucky.   Inez Deposit Bank had approximately $149 million in assets at June 30, 2020, and has four branches –...

The First Bank Transaction of 2020 in KY

PRESS RELEASE   First State Bank to Acquire Inez Deposit Bank     September 25, 2020 - First State Bancorp, Inc., an Ohio corporation, and its wholly-owned subsidiary, First State Bank, a state-chartered community bank headquartered in Winchester, Ohio, are pleased to announce the signing of a definitive agreement to acquire Community Holding Company, a Kentucky corporation, and bank holding company, and its subsidiary, Inez Deposit Bank, a state-chartered commercial bank headquartered in Inez, Kentucky.   Inez Deposit Bank had approximately $149 million in assets at June 30, 2020, and has...

2020 Bank Compensation Survey

Bank Director Magazine, Sponsored by Compensation Advisors Major points on CEO Compensation Bank CEO Compensation increases in the latest survey.  More community banks are paying additional compensation in the form of cash and stock or equity grants. Cash Incentives amount to 20% of base in smaller banks and Equity grants are close behind at 18% of base to a high of 45% to 50% of base in banks $1-$10 billion in assets.   Banks less than $250 Million in Assets Salary $200,000 Total Compensation $251,000 Median Cash Incentive $45,000 or 20% of base compensation Median Equity grants $35,000 or...

Considerations for Banks selling to Credit Unions

Banks Selling to Credit Unions                                           CONSIDERATIONS                      Transaction                    Most always all cash                                                                                                                                           Asset purchase and some assets are not allowed to be purchased by CU Taxes                              Shareholders must pay taxes on transaction                                                                                             Holding Company may have a tax liabilit Staffing...

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