The transaction, expected to close in the first half of 2027, would expand First Harrison’s footprint across southern Indiana and western Kentucky.

First Federal’s footprint is largely situated around Indiana’s third-largest city, Evansville, which serves as a commercial hub for southwestern Indiana, southeastern Illinois and northwestern Kentucky.

“The expansion of our branch network across [southern Indiana and western Kentucky] will allow us to attract additional talent, build meaningful customer relationships and grow our franchise through a partnership with an organization that shares our approach to community banking,” Frederick said in a prepared statement.

First Federal counts 10 branches. First Harrison has 17, primarily situated between Clarksville, Indiana, and greater Louisville, Kentucky.

The deal’s $33.2 million value is based on the 20-day volume-weighted average closing price of First Capital from Tuesday: $63.05 per share.

Michael Head, president and CEO of First Bancorp, will join the holding company’s board and become a market president at First Harrison. In addition to an annual base salary of $305,242, he will receive a lump sum in cash from First Federal equal to 2.99 times his base pay, contingent on his employment through closing.

The “cultural alignment” between First Capital and First Bancorp is “ideal for the next chapter for First Bancorp’s customers, employees and shareholders,” Head said in a prepared statement, adding the deal will “provide additional resources to support our customers, create new opportunities for our employees and continue our longstanding commitment to the communities we serve.”

3075 shares of First Capital stock for each First Bancorp share they own.

Source link