German American Bancorp and Heartland BancCorp to merge in $330m deal
Indiana, US-based German American Bancorp, parent company of German American Bank, and Ohio’s Heartland BancCorp, parent company of Heartland Bank, have entered into a definitive agreement for a $330 million merger.
German American Bancorp to merge with Heartland BancCorp
Upon completion of the deal, Heartland Bank will be merged into German American Bank and will operate under an undisclosed co-branded name in the Ohio markets.
The combined entity will reportedly boast over $8.1 billion in assets and 95 branches across Central and Northern Kentucky, Central and Southwest Ohio, and Southern Indiana.
The all-stock transaction, expected to close in Q1 2025, will see Heartland shareholders – excluding those participating in the Heartland retirement plan – receive 3.9 shares of German American common stock for each share of Heartland common stock in a tax-free exchange.
Meanwhile, shares from the Heartland retirement plan will be exchanged for an equivalent cash amount.
This strategic transaction will “expand German American’s footprint into Columbus and Cincinnati, Ohio, two of the most vibrant and fastest-growing markets in the Midwest,” states D. Neil Dauby, chairman and CEO of German American.
Furthermore, he anticipates that the deal will “be materially accretive to German American’s earnings per share during the 12 months following completion of the transaction with a relatively quick tangible book value earn back period”.
Scott McComb, Heartland’s chairman, president and CEO, is set to join the German American Bancorp and German American Bank boards of directors.
The merger continues the recent wave of US community bank M&A deals in the US. This week, Mississippi-based Renasant Corporation revealed plans to acquire regional competitor The First Bancshares for approximately $1.2 billion. Meanwhile, West Virginia’s WesBanco has finalised a $959 million all-stock deal to acquire Ohio’s Premier Financial.
