City Holding acquires parents of 2 Ky. banks
CHARLESTON — City Holding Co., the Charleston-based parent company of City National Bank of West Virginia, announced the concurrent signing of two separate definitive merger agreements.
Under one agreement, the company will acquire Poage Bankshares Inc., the parent company of Town Square Bank in Ashland. Under the other agreement, City Holding Co., will acquire Farmers Deposit Bancorp, the parent company of Farmers Deposit Bank in Cynthiana, Kentucky.
Under terms of the Poage merger, Poage shareholders will receive 0.335 shares of City common stock for each outstanding share of Poage common stock. Based on City’s five-day average closing price of $78.43 as of July 10, 2018, this equates to a per share value of $26.27 and an aggregate deal value of $93.5 million.
The Farmers Deposit merger agreement calls for Farmers Deposit shareholders to receive $24.9 million in cash for all outstanding shares of Farmers Deposit common stock.
City Holding said it will continue to provide high-quality banking solutions for its communities and remain well positioned for the future. The combined company will have $4.8 billion in assets and deposits of $3.9 billion.
Upon completion of the Poage merger, the subsidiary bank of Poage and will merge into City National Bank of West Virginia. Upon completion of the Farmers Deposit merger, the subsidiary bank of Farmers Deposit will merge into City National Bank of West Virginia.
“Our leadership recognized these partnerships as strategic next steps for enhancing our market presence throughout Kentucky and we are fortunate to be making this move forward,” Charles “Skip” Hageboeck, president and CEO of City Holding Co., said in a news release.
Both the Poage and Farmers Deposit mergers are expected to close in the fourth quarter of 2018, pending customary closing conditions, including receipt of required regulatory approvals and the approval by the shareholders of Poage and Farmers Deposit.