Stock Yards Bancorp in Louisville, Ky., has agreed to buy Field and Main Bancorp in Henderson, Ky.
The $9.5 billion-asset Stock Yards said in a press release that it will pay $105.7 million in stock for the $861 million-asset Field and Main. The deal, which is expected to close in the second quarter, priced Field and Main at 150% of its tangible book value.
The deal will accelerate Stock Yards’ expansion in Western Kentucky. Field and Main has six branches, $652 million in loans, and $781 million in deposits.
The acquisition “joins two community banks whose values and cultures are closely aligned and significantly expands our reach in Western Kentucky,” Ja Hillebrand, Stock Yards’ chairman and CEO, said in the release.
“Field & Main customers will continue to receive the outstanding service they have come to rely on, with the added benefit of our extended branch presence throughout Louisville, central, eastern, and northern Kentucky, as well as into the Cincinnati and Indianapolis metropolitan markets,” he added.
The transaction is expected to be 5.7% accretive to Stock Yards’ earnings per share, including all cost savings. It should take less than a year for Stock Yards to earn back an estimated 0.9% dilution to its tangible book value.
Stock Yards expects to cut 34% of Field and Main’s annual noninterest expense. It expects to incur $16.9 million of pretax merger-related charges.
Scott Davis, Field and Main’s chairman and CEO, will join Stock Yards’ board.
Stephens and FBT Gibbons advised Stock Yards. Raymond James and Stoll Keenon Ogden advised Field and Main.