CFB merges with First Savings Bank
Merger doubles FSB's presence throughout region
May 06, 2009
First Savings Financial Group Inc., the holding company for Clarksville-based First Savings Bank, F.S.B., and Corydon-based Community First Bank, a majority-owned subsidiary of Community First Financial Group Inc., announced last week the signing of a definitive agreement for the merger of Community First Bank into First Savings Bank in an all-cash transaction valued at about $20.5 million.
Community First Financial Group Inc. owns approximately 74 percent of Community First Bank's outstanding common stock.
"We are excited by the opportunity to merge with First Savings Bank, an organization that shares our community banking focus and commitment to customer service," Samuel E. Eckart, president and chief executive officer of CFB, said.
"The combination of our organizations, our people and our financial resources will ensure that our customers continue to receive the competitive, customer-focused banking products and services to which they are accustomed, while providing a high-quality, rewarding work environment for our employees."
As of Dec. 31, First Savings Financial Group's consolidated assets were approximately $229.9 million and CFB had assets of about $256.6 million. The transaction will increase the number of banking offices of First Savings Bank from seven to 14 and expand its presence into Crawford, Harrison and Washington counties.
Under the terms of the transaction, shareholders of CFB will be entitled to receive $17.13 in cash in exchange for each share of CFB common stock. The amount is subject to change.
Based on a merger price of $17.13 per share, the approximate transaction value of $20.5 million represents 115.32 percent of CFB's tangible book value and a core deposit premium of 1.8 percent.
The completion of the merger is subject to certain customary conditions, including the approval of the shareholders of CFB and the receipt of regulatory approvals. Completion of the merger is expected to occur in the third quarter of this year.
"We are excited about our new partnership with Community First Bank," Larry W. Myers, president and chief executive officer of First Savings Financial Group, said.
"We strongly believe that the combined financial institution will result in increased value to our shareholders and improved service to the Southern Indiana community."
Upon closing, four of CFB's directors are expected to join the board of directors of FSB and three are expected to join the board of directors of First Savings Financial Group.
FSB currently operates seven offices in Clarksville, Jeffersonville, Charlestown, Sellersburg, Floyds Knobs and Georgetown. CFB operates seven offices in Corydon, English, Leavenworth, Marengo, Milltown and Salem.