Harrison-based bank spreads its wings into Floyd County
First Capital Inc., parent company of First Harrison Bank, has signed a definitive merger agreement with Hometown Bancshares Inc. of New Albany. Hometown Bancshares operates Hometown National Bank.
Hometown Bancshares will merge into First Capital in a transaction valued at about $10.7 million.
The transaction will increase First Capital’s assets from $291 million as of June 30 to about $373 million. The number of First Harrison banking offices will increase from nine to 11.
“We are very pleased to announce our agreement for Hometown Bancshares to merge with First Capital,” said William W. Harrod, president and chief executive officer of First Capital. “This merger of two community-oriented institutions represents a natural extension of our franchise and will give our combined company a much stronger presence in the New Albany and Floyd County market area.
“We look forward to continuing to emphasize the personal service and community banking focus that our and Hometown’s customers appreciate.”
Ron Clark, chief executive officer of Hometown Bancshares, said, “We believe that this transaction is an excellent opportunity for our customers and the communities we serve. Our commitment to preserving a community bank atmosphere and high quality of service will be met by this merger.
“Moreover, our customers will benefit from access to a greater selection of services.”
Hometown Bancshares is the holding company for Hometown National Bank, which operates two offices in Indiana. As of June 30, Hometown Bancshares had total assets of $82 million and deposits of $75 million.
First Capital’s home base will remain in Corydon. “We will always be headquartered in Corydon, Indiana,” said Sam Uhl, president of First Harrison Bank.
“The combination of a strong community bank like Hometown and First Harrison Bank will open the door to many more services to all our customers,” Uhl said. “In addition to our Hometown merger, we recently broke ground on a new office on Allison Lane in Jeffersonville.”
When that branch opens, First Harrison Bank will have 12 offices.
The merger is expected to be completed in the first quarter of 2003.
“This can be an exciting time for our bank,” said Bob Kleehamer, president of Hometown National Bank. Kleehamer will remain as area president, responsible for the offices and business development in the New Albany and Clark County markets.
First Capital’s management team and board of directors will remain intact following the merger. An advisory board consisting of each of the non-employee directors of Hometown Bancshares will be established and will provide advice to First Capital regarding the operations of the former Hometown branches.
First Capital will file with the Securities and Exchange Commission in connection with the proposed merger. Documents filed with the SEC may be obtained free at the SEC Web site, www.sec.gov., or from First Capital at 220 Federal Drive NW, Corydon, IN 47112, telephone 738-2198.