First Kentucky Agrees To Merge With National City of Cleveland
LOUISVILLE, Ky. (AP) _ First Kentucky National Corp., Kentucky’s largest bank holding company, has agreed to a $660 million merger with National City Corp. of Cleveland, the companies announced Wednesday.
The proposed merger, which is subject to approval of stockholders and regulators, would create a banking organization with combined asets of about $20 billion, placing it among the three dozen biggest U.S. banking concerns.
National City had assets of nearly $15 billion on Dec. 31, about three times of those at First Kentucky.
According to terms of the agreement, each share of First Kentucky common stock would be exchanged for .8825 of a share of National City stock, according to a news release.
A. Stevens Miles, First Kentucky’s chairman and chief executive officer, and Edward B. Brandon, National City’s chairman, said in the release that First Kentucky will operate autonomously and maintain its community ties.
″The combination of the best banking franchise in Ohio with the best banking franchise in Kentucky will prove beneficial to the stockholders, customers, communities and employees of both organizations,″ Brandon said.
″Both National City and First Kentucky have a tradition of providing excellent service in their respective markets. This combination will not only continue that tradition, but also build upon it by cross-marketing specialized services offered by each into the other’s market.″
Miles will become a vice chairman and director of National City.
National City has branches in 52 of Ohio’s 88 counties. First Kentucky would be National City’s first bank outside Ohio.