|Fri, Mar 07, 2014 02:31 PM
First Savings acquires CFB in bank merger
May 06, 2009 | 08:41 AM
Community First Bank, which operates seven offices in Harrison, Crawford and Washington counties, will merge with Clarksville-based First Savings Bank.
First Savings Financial Group Inc., the holding company for First Savings Bank, F.S.B., and Corydon-based Community First Bank, a majority-owned subsidiary of Community First Financial Group Inc., announced last week the signing of a definitive agreement for the merger in an all-cash transaction valued at approximately $20.5 million.
Community First Financial Group owns approximately 74 percent of Community First Bank's outstanding common stock.
"Our customers will see a continued strong emphasis on quality service and products. They will benefit by an expanded service area, as well," Samuel E. Eckart, president and chief executive officer of Community First Bank, said.
"First Savings Bank shares our strong commitment to the communities we serve as evidenced by the community foundation they formed," he added. "Philosophically, both banks recognize that serving our customers and helping to build our communities is the foundation of a good bank."
As of Dec. 31, First Savings Financial Group's consolidated assets were approximately $229.9 million and Community First Bank had assets of about $256.6 million. The transaction increases the number of banking offices of First Savings Bank from seven to 14 and expands its presence into Crawford, Harrison and Washington counties.
Eckart said changes should be minimal and viewed to be positive by his bank's customers.
"I can say these things with confidence. We have had a long, respectful relationship with several of the senior management and board members, and through time have come to understand how much alike we think," Eckart said. "This was one of the major factors in our decision who we wished to align ourselves with. Our customers and communities will see positive benefits from this union."
Under the terms of the transaction, shareholders of Community First Bank will be entitled to receive $17.13 in cash in exchange for each share of Community First Bank common stock. The amount is subject to change, however.
The completion of the merger, expected to occur in the third quarter of this year, is subject to certain customary conditions, in-cluding the approval of the shareholders of Community First Bank and the receipt of regulatory approvals.
Larry W. Myers, president and chief executive officer of First Savings Financial Group, said, "We are excited about our new partnership with Community First Bank. The merger of the two entities represents the implementation of our strategic vision outlined in our prospectus last fall."
Upon closing, four of Community First Bank's directors are expected to join the board of directors of First Savings Bank and three are expected to join the board of directors of First Savings Financial Group.
First Savings Bank currently operates offices in Georgetown, Floyds Knobs, Clarksville, Jeffersonville, Charlestown and Sellersburg.
Community First Bank operates offices in Corydon, Milltown, Marengo, English, Leavenworth and Salem.