Articles and Publications
Considerations for Credit Unions buying Banks
Credit Unions Buying Banks
CONSIDERATIONS
Transaction
Most always all cash
An asset purchase with acquiror assuming liabilities
Taxes
Credit Unions pay no corporate taxes
Deferred tax assets on balance sheets cannot be purchased
Cost Savings
Typically limited to redundancies at Corporate level
Positions often include HR, Accounting, Marketing, etc.
Capital
Credit Unions must currently maintain 7.00% Net Worth Ratio
Post transaction,...
KY Bank M&A 2019
Bank Transactions and Acquisitions in Kentucky in 2019
Bank Transactions in Kentucky were much more active in 2019 than in recent years. There were 17 transactions that were closed or announced during the year not including the FDIC sale of Louisa.
Four states bordering Kentucky took an active role in acquisitions this year. Less than half of the transactions were led by Kentucky banks or groups. Six states participated in the acquisitions this past year including the following with the number of transactions during the year illustrated.
Indiana 2
Louisiana 1
Tennesse 3
Kentucky 7
Ohio...
Bank Merger Activity in KY
There were 12 banking transactions announced or closed in Kentucky in 2019 through October 30th.
Total assets purchased were $2.538 billion for an average size bank of $211 million.
The acquirors had an average size of $1.9 billion or 9 to 1 acquiror size vs. acquired size.
Of the total transactions, 5 were acquired by publicly traded banks or bank holding companies.
The total assets of those being acquired by publicly traded institutions was $1.930 billion or an average of $386 million.
The average multiple paid for those banks was approximately 131% of tangible book, however the multiple...
Investment Group buys Central KY Bank
Press Release:
King Harris Bancorp, Inc. and Community Financial of Kentucky, Inc.
Agree to Share Purchase Transaction
LEBANON, KY, August 26, 2019 – King Harris Bancorp, Inc. and Community Financial of Kentucky, Inc. today announced they have entered into an agreement whereby King Harris Bancorp will acquire controlling interest in Community Financial of Kentucky for cash. The transaction has received approvals from each party’s board of directors and is expected to close in the fourth quarter 2019, subject to regulatory approvals and other customary closing conditions.
King...
Merger of Equals in Western KY
http://Merger of Equals in Western KY
Farmers Bank & Trust of Marion, KY announces merger with First State Bank of Central City, KY
Farmers Bank & Trust Company, a Marion, Kentucky-based community bank that has served Western Kentucky since 1899, has announced a merger with First State Bank Inc., a Central City, Kentucky -based bank that is a subsidiary of Community Bancorp of Kentucky Inc.
The planned acquisition of First State Bank will add five new offices to Farmers Bank's existing five-branch network. First State has two offices in Muhlenberg County (Central City and Greenville...
W.V. Bank HC buys E. Ky bank
Premier Financial Bancorp, Inc. West Virginia, Announces Agreement to Purchase The First National Bank of Jackson, Kentucky
HUNTINGTON, W.Va., July 9, 2019 /PRNewswire/ -- PREMIER FINANCIAL BANCORP, INC. (PREMIER), (NASDAQ/GM: PFBI), a $1.7 billion community financial holding company with two bank subsidiaries, and The First National Holding Company of Jackson, ("First Holding"), a $101 million single bank holding company headquartered in Jackson, Kentucky jointly announce that they have entered into a definitive agreement whereby Citizens Deposit Bank and Trust ("Citizens Deposit"), Premier'...
We are buying a bank in 2019.
We are acquiring a bank this year, as stated by 50% of the bankers surveyed in a recent Bank Director survey taken from banks across the US.
This was according to a recent survey of bank CEOs, executives and directors conducted by Bank Director and sponsored by Crowe LLP of banks ranging in size of less than 250 Million in assets to over $10 Billion in assets.
Of the factors most important in the banks future acquisition strategy, 97% stated that Deposit Base would be the key driver in their acquisition strategy and asset size was rated slightly less.
Additionally, 25% said they would target...
Kentucky Banks Deposit Growth 2018
Expansion into or within the
State of Kentucky
M. Lynn Cooper
President
Milynco Financial
As a financial institution, where is the best area to expand into or within the state of Kentucky which will potentially yield the quickest growth in terms of deposits?
When a financial institution expands into new markets, they want to grow as quickly as possible to get to profitability and provide a reasonable return on their investment.
Our expansion analysis...
Career Opportunities
Our sister organization, The Newburgh Group has some career opportunities that we want to share with our readers from time to time. The Newburgh Group is an executive recruiting firm established in the year 2000, focused on banks & financial service companies throughout the country. Brandon Cooper is the President and Partner of the firm and provides top quality candidates for the best banks. To reach him, please call 812.858.0807 or email him at BCooper@NewburghGroup.com.
Below is a list of a few of their current opportunities.
Position
Geography
Compensation
Industry
Client...