Southern Indiana Business Report
JASPER – German American Bancorp Inc. announced Monday it has completed its merger with Heartland BancCorp, the parent company of Heartland Bank.
Immediately following completion of the holding company transaction, Heartland Bank merged with and into German American’s banking subsidiary, German American Bank and will operate under a co-branded name in the Ohio markets, according to a press release.
In July, German America and Heartland announced that they had entered into a definitive agreement to merge Heartland into German American in a deal valued at $330 million.
The merger allows German American Bank, headquartered in Jasper, to expand into Ohio markets.
The combined organization will have a community branch network of 94 locations across Indiana, Kentucky and Ohio and would have had approximately $8.3 billion in total assets as of Dec. 31.
“We expect this strategic transaction will be 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,” said. Neil Dauby, chairman and CEO of German American, in prepared remarks. “We also expect our pro forma capital ratios will continue to exceed regulatory well-capitalized levels providing ongoing financial strength and future growth opportunities.”
Dauby continued, “This strategic partnership will bring together two high-performing, community-oriented organizations and expand German American’s footprint into Columbus and Cincinnati, Ohio, two of the most vibrant and fastest-growing markets in the Midwest. We share the same culture and commitment to serving our customers and our communities with a relationship-based approach. We are excited to welcome the Heartland customers, employees, communities and shareholders to the German American family.”
Under the terms of the merger agreement, G. Scott McComb, Heartland’s chairman, president and CEO, and Ronnie R. Stokes, another Heartland board member, have been appointed to the German American Bancorp and German American Bank boards of directors, effective Feb. 1.
Many members of the Heartland executive and senior teams will continue to serve the combined organization as regional management to provide local leadership and decision making while the customer/client focused Heartland banking and wealth management teams will continue to serve the financial and investment needs of individuals and businesses throughout the Greater Columbus and Cincinnati communities.
“This strategic partnership with a like-minded, larger community bank will enable us to continue our strong brand and growth trajectory within the markets we serve,” McComb said. “It will also allow us to deepen and broaden our current and prospective customer relationships with enhanced financial service offerings. Strategically and culturally, Heartland and German American are exceptionally well aligned with a strong commitment to the community banking business model. That model, centered on delivering an exceptional customer experience and a willingness to invest in local communities, which Ohio has come to know and love from Heartland, will continue to propel the combined organization’s success.”