Kentucky bank M&A wakes up with largest deal since 2018

After a ten.5-month hiatus, Kentucky financial institution M&A sprung again to life final month with two offers introduced within the span of every week.

This text is a part of S&P World Market Intelligence’s collection of state profiles, which take an in-depth have a look at M&A and key banking metrics for banks and thrifts with lower than $10 billion in property.

Peaks and valleys within the Bluegrass State

Kentucky financial institution M&A was on a sizzling streak previous to this chilly spell of practically a 12 months. 9 offers have been introduced within the state in 2018 and 14 in 2019, not together with terminated offers.

Final 12 months, whereas solely 5 offers have been introduced, the dimensions of the targets surged and reached a two-decade excessive. The focused corporations reported a mixed $3.98 billion in property previous to their deal bulletins, the very best yearly degree within the state since 2001, in response to S&P World Market Intelligence knowledge.

Cross-border exercise

Each of this 12 months’s acquisitions embody consumers from neighboring states.

Most just lately, on Oct. 25, Marietta, Ohio-based Peoples Bancorp Inc. introduced that it might purchase Louisville, Ky.-based Limestone Bancorp Inc. for $215.6 million, the state’s largest deal since April 2018 when Wheeling, W.Va.-based WesBanco Inc. introduced it deliberate to purchase Frankfort-based Farmers Capital Financial institution Corp.

The deal was Peoples’ tenth whole-bank acquisition announcement since 2012. The corporate’s final Kentucky acquisition got here in October 2018 when it introduced its take care of Prestonsburg-based First Prestonsburg Bancshares Inc.

Limestone Bancorp’s subsidiary, Limestone Financial institution Inc., was the Thirteenth-largest Kentucky group financial institution by property as of June 30.

Every week previous to the Peoples’ deal announcement, on Oct. 18, Charleston, W.Va.-based Metropolis Holding Co. introduced its personal $60.5 million deal for Versailles, Ky.-based Residents Commerce Bancshares Inc., its third Kentucky whole-bank deal since 2018.

Kentucky’s largest group banks bulking up

Louisville-based Inventory Yards Bancorp Inc., the holding firm of Kentucky’s largest group financial institution beneath $10 billion in property, has been an energetic acquirer in recent times, closing on its $153.0 million buy of Louisville-based Commonwealth Bancshares Inc. in March and its $191.3 million deal for Paris, Ky.-based Kentucky Bancshares Inc. in Could 2021.

Louisville-based Republic Bancorp Inc., mother or father of the state’s second-largest group financial institution, introduced its personal cross-border acquisition final month, paying $51.0 million to purchase Cincinnati-based CBank in a deal anticipated to shut within the first quarter of 2023.