First Security Bank purchases four First Federal offices | Business
First Security Inc. announced today that First Security Bank of Owensboro, Inc., the wholly‐owned subsidiary of First Security Inc., has agreed to purchase four banking offices of First Federal Savings Bank of Elizabethtown, Inc, the banking subsidiary of First Financial Services Corporation (NASDAQ: FFKY). The banking offices are all located in Louisville.
The total deposits of these branches that are being assumed total $217 million at March 31, 2012. Total performing loans that are being purchased by First Security total $75 million based on the loan balances at March 31, 2012. The loans are being purchased at a discount of 1% while the deposits are being purchased at a 1.67% premium. Upon completion of the acquisition, First Security is projected to have total assets of $650 million, total loans of $380 million and total deposits of $540 million.
M. Lynn Cooper, President and CEO stated, “We look forward to continuing our expansion plans into a new market. The Louisville, Kentucky market is the largest city in Kentucky and certainly compliments and adds further shareholder value to our existing Kentucky and Indiana locations. This acquisition is another step in the execution of First Security’s strategic plan to grow its franchise in markets that we have identified which show long term economic growth potential, and that are accretive to earnings and shareholder value.”
After completion of this transaction, First Security will have 13 banking centers in Kentucky and Indiana. Upon closing, First Security’s market share will rank approximately 23rd in the state and should be the 16th largest bank in the state of Kentucky for those banks headquartered in Kentucky.
First Security has also closed on its purchase of a former bank branch located in Newburgh, Indiana. The Newburgh branch will represent the 14th banking center and is expected to open sometime in the fall of 2012. After, First Security’s franchise will include the Kentucky communities of Bowling Green, Franklin, Lexington, Louisville and Owensboro and the Indiana communities of Evansville and Newburgh.
“We are committed to providing the type of service that our customers desire and expect from a highly customer focused community bank. We value the opportunity to assist our professional bankers in this new market by potentially providing new products and services to our customers,” commented Cooper.
The sale is expected to be completed in the third quarter of 2012, subject to regulatory approval and First Security raising sufficient capital to support the acquisition.