Boston, MA 04/28/2014 (wallstreetpr) – The $89 million bank holding company Community Bank Shares of Indiana, Inc. (NASDAQ:CBIN) announced a deal to acquire the operations of First Federal Savings Bank of Elizabethtown in Kentucky. The move is part of the company’s strategic plan to grow by both acquisitions and organically. The transaction will be all-stock and is expected to close later in the third quarter.
The acquisition will boost the company’s presence in Kentucky and Indiana besides tremendously increasing its asset portfolio. The latest acquisition will be the second that the company has performed in the past 12 months. So far, the acquisitions seem to be paying off as the company continues to attract higher revenue while achieving cost-savings through resources sharing.
When the deal closes
Community Bank Shares of Indiana, Inc. (NASDAQ:CBIN) will have about 41 branches and $1.6 billion in assets throughout Kentucky and southeastern Indiana after it closes the transaction with First Federal.
The deal is valued at $18 million and will involve all cash, according to a press release issued by the company.
The company operates Your Community Band and The Scott County State Bank, which are state chartered banks. Therefore, First Federal will be merged together with Your Community Bank. As such, the branch offices of First Federal will become the branches of Your Community Bank.
According to CIBN CEO James D. Rickard, the move to acquire First Federal will enhance customer experience across the Bardstown and Louisville markets. Moreover, the company expects the move to translate into revenue growth besides supporting profitability through reduction of expenses as some resources are shared.
The way forward
The central theme at Community Bank Shares of Indiana, Inc. (NASDAQ:CBIN) is about achieving growth that does not come at a huge expense to the point of eroding profits. The acquisition will also help the company create a dynamic community banking operation that will help the company to take advantage of opportunities as they come while also easily adjusting to changes in the market where necessary without big negative impact on the performance.
