German American to merge with Ohio bank
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Jasper-based German American Bancorp Inc. is planning to merge with Heartland BancCorp, headquartered in Whitehall, Ohio, the banks announced Tuesday.
The cash and stock deal, valued at more than $330 million, would bring German American’s total footprint to nearly 95 branches and $8.1 billion in assets.
Upon closing, Heartland’s subsidiary, Heartland Bank will merge into German American Bank and operate under a co-branded name in the Columbus and Cincinnati markets in Ohio.
“This strategic partnership will bring together two high-performing, community-oriented organizations and expand German American’s footprint into…two of the most vibrant and fastest-growing markets in the Midwest,” German American CEO Neil Dauby said in a news release. “We share the same culture and commitment to serving our customers and our communities with a relationship-based approach.”
Per the terms of the agreement, Heartland shareholders except for those held by the Heartland retirement plan will receive 3.90 shares of German American common stock for each share of Heartland stock they own.
The shares held by the Heartland retirement plan will be exchanged for an equivalent cash payment, German American said.
Heartland Bank operates 20 full-service banking offices with approximately $1.9 billion of total assets, $1.5 billion in total loans, and $1.6 billion in total deposits.
“This strategic partnership allows us to partner with another like-minded, larger community bank that enables us to continue our strong brand and growth trajectory within the markets we serve,” Heartland CEO Scott McComb said. “It will also allow us to deepen and broaden our current and prospective customer relationships with enhanced financial service offerings.”
McComb and current Heartland board member Ronnie Stokes are expected to join the boards of directors for both German American Bank and its parent company.
The deal has been unanimously approved by each company’s board of directors and is expected to close in the first quarter of 2025, pending shareholder and regulatory approvals.
The merger was announced in conjunction with German American’s second quarter earnings, which reported net income of $20.5 million, down from $22.1 million during the same period last year.
German American’s stock was up 0.14% to $40.72 per share at midday trading Tuesday.