German American Announces Completion of Merger With Heartland BancCorp and Heartland Bank
German American Bancorp (GABC) has completed its merger with Heartland BancCorp and Heartland Bank on February 1, 2025. The merger terms include Heartland shareholders receiving 3.90 shares of GABC common stock for each Heartland share, while Heartland 401(k) Plan holders will receive $161.19 per share in cash.
The combined organization will operate 94 branch locations across Indiana, Kentucky, and Ohio, with approximately $8.3 billion in total assets as of December 31, 2024. The merger expands GABC's footprint into Columbus and Cincinnati markets. The transaction is expected to be accretive to GABC's earnings per share within twelve months while maintaining well-capitalized regulatory ratios.
G. Scott McComb and Ronnie R. Stokes from Heartland's board have joined GABC's board of directors. Heartland's executive team will continue serving as regional management, maintaining local leadership and decision-making capabilities.
German American Bancorp (GABC) ha completato la sua fusione con Heartland BancCorp e Heartland Bank il 1 febbraio 2025. I termini della fusione prevedono che gli azionisti di Heartland ricevano 3,90 azioni di GABC per ogni azione di Heartland, mentre i titolari del piano 401(k) di Heartland riceveranno $161,19 per azione in contanti.
L'organizzazione combinata gestirà 94 filiali in Indiana, Kentucky e Ohio, con circa $8,3 miliardi in attivi totali al 31 dicembre 2024. La fusione espande la presenza di GABC nei mercati di Columbus e Cincinnati. Si prevede che la transazione sarà redditizia per gli utili per azione di GABC entro dodici mesi, mantenendo al contempo ratio regolamentari ben capitalizzati.
G. Scott McComb e Ronnie R. Stokes del consiglio di amministrazione di Heartland si sono uniti al consiglio di amministrazione di GABC. Il team esecutivo di Heartland continuerà a svolgere il ruolo di gestione regionale, mantenendo la leadership locale e le capacità decisionali.
German American Bancorp (GABC) ha completado su fusión con Heartland BancCorp y Heartland Bank el 1 de febrero de 2025. Los términos de la fusión incluyen que los accionistas de Heartland reciban 3.90 acciones de GABC por cada acción de Heartland, mientras que los titulares del Plan 401(k) de Heartland recibirán $161.19 por acción en efectivo.
La organización combinada operará 94 sucursales en Indiana, Kentucky y Ohio, con aproximadamente $8.3 mil millones en activos totales a partir del 31 de diciembre de 2024. La fusión expande la presencia de GABC en los mercados de Columbus y Cincinnati. Se espera que la transacción sea favorable para las ganancias por acción de GABC dentro de los doce meses, manteniendo al mismo tiempo ratios regulatorios bien capitalizados.
G. Scott McComb y Ronnie R. Stokes del consejo de administración de Heartland se han unido al consejo de administración de GABC. El equipo ejecutivo de Heartland continuará sirviendo en la gestión regional, manteniendo el liderazgo local y la capacidad de toma de decisiones.
독일 미국 뱅코프 (GABC)는 2025년 2월 1일에 하트랜드 뱅코프 및 하트랜드 뱅크와의 합병을 완료했습니다. 합병 조건에는 하트랜드 주주가 하트랜드 주식 1주당 3.90주의 GABC 보통주를 받는 것이 포함되며, 하트랜드 401(k) 플랜 보유자는 주당 161.19달러의 현금을 받게 됩니다.
합병된 조직은 인디애나, 켄터키, 오하이오 전역에 94개의 지점을 운영할 것이며, 2024년 12월 31일 기준으로 총 자산 83억 달러를 보유하고 있습니다. 이번 합병으로 GABC는 콜럼버스와 신시내티 시장에 진출하게 됩니다. 이 거래는 GABC의 주당 순이익에 12개월 이내에 긍정적인 영향을 미칠 것으로 예상되며, 규제 비율을 잘 유지할 것입니다.
하트랜드 이사회에서 G. Scott McComb과 Ronnie R. Stokes가 GABC 이사회에 합류했습니다. 하트랜드의 경영진은 지역 관리로 계속 근무하며 지역 리더십과 의사 결정 능력을 유지합니다.
German American Bancorp (GABC) a finalisé sa fusion avec Heartland BancCorp et Heartland Bank le 1er février 2025. Les termes de la fusion prévoient que les actionnaires de Heartland reçoivent 3,90 actions ordinaires de GABC pour chaque action de Heartland, tandis que les détenteurs du Plan 401(k) de Heartland recevront 161,19 $ par action en espèces.
L'organisation combinée exploitera 94 succursales dans l'Indiana, le Kentucky et l'Ohio, avec environ 8,3 milliards de dollars d'actifs totaux au 31 décembre 2024. La fusion étend la présence de GABC sur les marchés de Columbus et de Cincinnati. La transaction devrait avoir un impact positif sur le bénéfice par action de GABC dans les douze mois, tout en maintenant des ratios réglementaires bien capitalisés.
G. Scott McComb et Ronnie R. Stokes du conseil d'administration de Heartland ont rejoint le conseil d'administration de GABC. L'équipe dirigeante de Heartland continuera à servir en tant que direction régionale, en maintenant le leadership local et les capacités de prise de décision.
German American Bancorp (GABC) hat am 1. Februar 2025 die Fusion mit Heartland BancCorp und Heartland Bank abgeschlossen. Die Fusionsbedingungen sehen vor, dass die Aktionäre von Heartland für jede Aktie von Heartland 3,90 Aktien von GABC erhalten, während die Inhaber des Heartland 401(k)-Plans 161,19 $ pro Aktie in bar erhalten.
Die kombinierte Organisation wird 94 Filialen in Indiana, Kentucky und Ohio betreiben und hat zum 31. Dezember 2024 insgesamt 8,3 Milliarden Dollar an Vermögenswerten. Die Fusion erweitert die Präsenz von GABC auf den Märkten in Columbus und Cincinnati. Es wird erwartet, dass die Transaktion innerhalb von zwölf Monaten positiv auf den Gewinn pro Aktie von GABC wirkt und gleichzeitig gut kapitalisierte regulatorische Quoten aufrechterhält.
G. Scott McComb und Ronnie R. Stokes aus dem Vorstand von Heartland sind dem Vorstand von GABC beigetreten. Das Führungsteam von Heartland wird weiterhin als regionale Leitung tätig sein und lokale Führung sowie Entscheidungsfindungsfähigkeiten aufrechterhalten.
- Expansion into vibrant Columbus and Cincinnati markets
- Expected earnings per share accretion within 12 months
- Combined network of 94 branch locations across three states
- Total assets of approximately $8.3 billion
- Retention of Heartland's executive team for local leadership
- Potential share dilution from stock-based merger compensation
- Integration costs and risks associated with merging operations
Insights
This strategic merger marks a pivotal expansion for German American Bancorp, propelling the institution into two of the Midwest's most dynamic markets - Columbus and Cincinnati. The combined $8.3 billion asset base and 94-branch network across three states positions GABC as a formidable regional player.
The transaction structure reveals careful consideration for stakeholder interests:
- Heartland shareholders receive a 3.90:1 stock exchange ratio
- 401(k) plan participants get
$161.19 per share in cash - Option holders receive cash based on a calculated differential
The retention of Heartland's executive team, including G. Scott McComb joining GABC's board and maintaining local decision-making authority demonstrates a thoughtful integration strategy. This approach typically results in better customer retention and smoother operational transition. The merger's expected earnings accretion within 12 months, coupled with maintained well-capitalized status, suggests strong financial engineering.
Most notably, this expansion into Ohio's growth markets provides GABC with immediate scale and diversification benefits. Columbus and Cincinnati represent significant wealth management and commercial lending opportunities, potentially driving higher-margin business growth. The cultural alignment between both institutions, emphasizing community banking and relationship-based services, should facilitate successful market penetration while maintaining the strong customer service reputation both banks have established.
Each Heartland shareholder of record at closing (other than the Heartland 401(k) Plan) is entitled to receive 3.90 shares of German American common stock (the “Exchange Ratio”) for each of their shares of Heartland common stock, subject to their surrender of the old Heartland shares to the exchange agent designated by German American. Instructions and forms to accomplish that surrender and exchange process are being mailed by the exchange agent to each of Heartland’s shareholders of record as of closing.
The beneficial owners of Heartland shares held in the Heartland 401(k) Plan are entitled to receive a cash payment equal to
Each option to acquire a share of Heartland common stock outstanding at the closing of the merger has been cancelled in exchange for the right to receive a cash payment equal to (i)
Giving effect to the merger, the combined organization will have a community branch network of 94 locations across
“We expect this strategic transaction will be accretive to German American’s earnings per share during the twelve months following completion of the transaction with a relatively quick tangible book value earn back period,” stated D. Neil Dauby, Chairman and CEO of German American. “We also expect our pro forma capital ratios will continue to exceed regulatory well-capitalized levels providing ongoing financial strength and future growth opportunities.”
Dauby continued, “This strategic partnership will bring together two high-performing, community-oriented organizations and expand German American’s footprint into
As contemplated by the terms of the merger agreement, G. Scott
Many members of the Heartland Executive and senior teams will continue to serve the combined organization as regional management to provide local leadership and decision making while the customer/client focused Heartland banking and wealth management teams will continue to serve the financial and investment needs of individuals and businesses throughout the
Commenting on the merger, Mr.
Keefe, Bruyette & Woods, Inc., A Stifel Company served as financial advisor on the transaction to German American and Dentons Bingham Greenebaum LLP served as legal counsel.
Raymond James & Associates, Inc. served as the financial advisor on the transaction to Heartland and Hunton Andrews Kurth LLP served as legal counsel.
Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These forward-looking statements include, but are not limited to, statements relating to the expected benefits of the merger (the “Merger”) between German American Bancorp, Inc. (“German American”) and Heartland BancCorp (“Heartland”), including future financial and operating results, cost savings, enhanced revenues, and accretion/dilution to reported earnings that may be realized from the Merger, as well as other statements of expectations regarding the Merger, and other statements of German American’s goals, intentions and expectations; statements regarding German American’s business plan and growth strategies; statements regarding the asset quality of German American’s loan and investment portfolios; and estimates of German American’s risks and future costs and benefits, whether with respect to the Merger or otherwise.
These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: the risk that the businesses of German American and Heartland will not be integrated successfully or such integration may be more difficult, time-consuming, or costly than expected; expected revenue synergies and cost savings from the Merger may not be fully realized or realized within the expected time frame; revenues following the Merger may be lower than expected; customer and employee relationships and business operations may be disrupted by the Merger; the ability of German American to complete integration and attract new customers; possible changes in economic and business conditions; the impacts of epidemics, pandemics or other infectious disease outbreaks; the existence or exacerbation of general geopolitical instability and uncertainty; possible changes in monetary and fiscal policies, and laws and regulations; possible changes in the creditworthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like German American’s affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity, credit, and interest rate risks associated with German American’s business; and other risks and factors identified in German American’s cautionary language included under the headings “Forward-Looking Statements and Associated Risk” and “Risk Factors” in German American’s Annual Report on Form 10-K for the year ended December 31, 2023, and other documents subsequently filed by German American with the SEC. German American does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, German American’s past results of operations do not necessarily indicate its anticipated future results.
About German American
German American Bancorp, Inc. (Nasdaq: GABC) is a financial holding company based in
View source version on businesswire.com: https://www.businesswire.com/news/home/20250203267541/en/
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M. Rust, President and Chief Financial Officer
(812) 482-1314
Source: German American Bancorp, Inc.
FAQ
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