Union bank

Citizens Union Bank of Shelbyville officially merged with German American Bank

JASPER, Ind (WEHT) – German American Bancorp, Inc. today announced that it has completed its merger with Citizens Union Bancorp of Shelbyville, Inc., the parent company of Citizens Union Bank of Shelbyville, Inc. of Shelbyville, Kentucky, effective at 12:01 a.m. Eastern Standard Time (EST) on January 1, 2022.

Immediately upon completion of the holding company transaction, Citizens Union Bank merged with and into German American’s banking subsidiary, German American Bank.

D. Neil Dauby, President and CEO of German American, said, “We are delighted to welcome customers, employees and shareholders of Citizens Union to German American. This merger with Citizens Union represents the next step in German American’s strategic vision to expand our community-driven, customer-centric business model throughout the Commonwealth of Kentucky. This combination of German American’s existing operations in the greater Louisville, Kentucky area, with that of Citizens Union’s strong community banking franchise will result in a tripling of our market share to approximately 2.5% for a position globally among the top 10 in terms of market share. It increases the market share of German-American deposits to the 4th largest bank with less than $20 billion in assets. We are excited to expand into this very dynamic and growing market and believe that 2 we are extremely well placed to provide our extensive offerings of banking, insurance and investment products and services to current and potential Citizens customers. Union.

Dauby continued, “We expect this strategic transaction to be accretive to German American’s earnings per share within 12 months of closing the transaction, and will have a rapid return to tangible book value. Coupled with our previous First Security and Citizen First combinations, this transaction also adds to our efficiency and scale. Following completion of the merger, German American’s pro forma capital ratios will continue to significantly exceed regulatory well-capitalization levels, allowing us to continue to take advantage of future organic growth opportunities in Kentucky and the United States. our entire existing Southern Indiana market area.

David Bowling, CEO of Citizens Union, and Darryl Traylor, President of Citizens Union, will assume regional roles as Senior Advisor as Regional Chair and Vice Chair. Commenting on the merger, Mr. Bowling said, “This partnership with German American will allow us to deepen and expand the financial services we provide in each of our markets, significantly increase our lending limits and will provide great opportunities both our customers and our employees. . Citizens Union is well-aligned with German-Americans, both culturally and strategically, and through this partnership, German-Americans are gaining a significant presence in the greater Louisville, Kentucky market region.

Mr. Traylor added, “German American continues to be one of the most successful community banking organizations in the country, and their stock provides our shareholders with increased liquidity and trading volume. German American’s reputation, financial strength and capabilities will bring tremendous value to our customers, employees, communities and shareholders.

Following the merger and the planned merger integration, German American, through its banking subsidiary German American Bank, will operate 79 banking offices in 19 counties in southern Indiana and 14 counties in Kentucky. German American also has an investment brokerage subsidiary known as German American Investment Services, Inc., and a full property and casualty insurance agency through German American Insurance, Inc. On a pro forma basis, as of September 30, 2021, the Together German American/Citizens Union business reported total assets of approximately $6.6 billion, total loans of approximately $3.7 billion, and total deposits of approximately $5.5 billion of dollars.