Stock Yards Bancorp, parent company of Stock Yards Bank & Trust, entered into a definitive agreement to acquire all of the common stock of King Bancorp in an all-cash transaction valued at $28 million.
Headquartered in Louisville, KY, King is the holding company for King Southern Bank, which operates five branches in the greater Louisville area and Nelson County. As of September 30, 2018, King had approximately $195 million in assets, $168 million in loans, $126 million in deposits and $16 million in tangible common equity.
Stock Yards CEO James A. Hillebrand commented, “We are excited about the opportunity this transaction presents to expand our market share in greater Louisville and extend our reach to new markets in the towns of Bloomfield and Chaplin in Nelson County, Kentucky. Like King Southern Bank, we have built a reputation for responsive, high quality customer service, and in that regard our two companies share a unique alignment of core philosophies, values and ambitions that should make the integration process simple and, for King’s customers, seamless and transparent. We look forward to serving these customers with a broader array of products, capabilities and resources, including one of the top wealth management groups in the country.”
James O. King III, president and CEO of King, added, “We have continued to pursue a vision of community banking that we have advanced since our founding. This transaction provides an increased competitive advantage in the banking arena, not only from the standpoint of products and services, but also those related to customer-facing technology and data security. We are pleased to become part of a like-minded institution to provide enhanced service and value to our customers and communities.”
King will join Stock Yards Bank & Trust upon the acquisition’s completion to ensure a smooth transition of King Southern Bank’s customers. He will also join Stock Yards Bank & Trust’s executive loan committee.
Stock Yards expects the all-cash acquisition will enable it to leverage its capital effectively and achieve mid-single digit earnings per share accretion on a fully phased-in basis.
The merger is expected to close during the second quarter of 2019, subject to customary regulatory approval and completion of closing conditions.
Banks Street Partners served as financial advisor and Stoll Keenon Ogden PLLC as legal counsel to Stock Yards. Sandler O’Neill + Partners served as financial advisor and Frost Brown Todd as legal counsel to King.
Incorporated in 1988 and based in Louisville, Stock Yards Bancorp has $3.3 billion in assets and is the parent company of Stock Yards Bank & Trust, which was established in 1904.
