City Holding Company Completes Acquisitions Bolstering Kentucky Presence
December 07 2018 - 6:15PM
Business Wire
City Holding Company (“City”) (Nasdaq: CHCO), the parent company
of City National Bank of West Virginia, announced today that it has
completed its acquisitions of Poage Bankshares, Inc., (“Poage”)
(Nasdaq: PBSK), the parent company of Town Square Bank, Ashland,
Kentucky, and Farmers Deposit Bancorp, Inc. (“Farmers Deposit”),
the parent company of Farmers Deposit Bank, Cynthiana, Kentucky.
Both acquisitions became effective as of the close of business on
December 7, 2018. The acquisition of Poage was structured as a
stock transaction valued at approximately $84.7 million, or $24.22
per share of Poage common stock. The acquisition of Farmers Deposit
was structured as a cash transaction valued at $24.9 million, or
$1,174.14 per share of Farmers Deposit common stock. City, Poage
and Farmers Deposit first announced that they had entered into
separate agreements to merge on July 11, 2018. The acquisition of
Poage included the merger of Town Square Bank into City National
Bank of West Virginia, and the acquisition of Farmers Deposit
included the merger of Farmers Deposit Bank into City National Bank
of West Virginia.
Based upon financial data as of September 30, 2018, the combined
company will have $5.0 billion in assets, deposits of $3.9 billion,
and gross loans of $3.5 billion, bolstering City’s presence in the
Huntington-Ashland and Lexington, Kentucky MSAs. “It is a pleasure
to welcome the staff and customers of Town Square Bank and Farmers
Deposit Bank into the City family,” remarked Charles R. (Skip)
Hageboeck, President and Chief Executive Officer of City. “With
strong roots in the region, and an emphasis on community service,
the synergies of our organizations are strong. We believe the
combination of our respective businesses will be positive for
shareholders, customers, and employees. On a combined basis,
through September 30, 2018, Poage and Farmers Deposit incurred
operating expenses of over $15 million, or more than $20 million on
an annualized basis. With multiple overlapping branches in the
Ashland market, more favorable data processing contracts and costs,
and the normal efficiencies of larger organizations, we anticipate
cost savings of more than 45%, which is good for shareholders. At
the same time, we have been able to retain more employees than
originally anticipated. We retained more than a dozen
administrative/operational staff from Town Square who are filling
open positions that existed at City. And, from a customer’s
perspective, they will continue to see the same people who have
been serving them at Town Square and Farmers Deposit, but will have
access to enhanced products and services. City’s dedication to
remain a community-focused bank, means that commitment to the local
communities will continue to be quite strong.”
Keefe, Bruyette & Woods, Inc. served as financial advisor
and Dinsmore & Shohl LLP served as legal counsel to City in
both transactions. Sandler O’Neill & Partners, L.P. served as
financial advisor and Luse Gorman, PC served as legal counsel to
Poage in the Poage transaction. ProBank Austin served as financial
advisor and Stites & Harbison, PLLC served as legal counsel to
Farmers Deposit in the Farmers Deposit transaction.
About City Holding Company
City Holding Company, headquartered in Charleston, West
Virginia is a financial holding company which owns City
National Bank of West Virginia. City received the highest ranking
in customer satisfaction in the north central region in J.D.
Power’s 2018 U.S. Retail Banking Satisfaction Study. City provides
a full range of consumer and commercial banking services to
individuals, businesses and industries through its 87 branches
across West Virginia, Virginia, Kentucky and Ohio. As of
September 30, 2018, City had $4.4 billion in total assets, $3.4
billion in deposits, and $3.1 billion in gross loans. For
additional information, locations, and hours of operation, please
visit www.bankatcity.com.
Safe Harbor Statement:
Statements made in this news release that are not historical
facts are “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, Section 21E
of the Securities Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995. These statements are
subject to certain risks and uncertainties including, but not
limited to, the successful integration of the transactions
contemplated in this release, which includes the retention of the
acquired customer relationships, adverse changes in economic
conditions, the impact of competitive products and pricing and the
other risks set forth in City’s filings with the SEC. As a result,
actual results may differ materially from the forward-looking
statements in this news release. These factors are not necessarily
all of the factors that could cause City’s actual results,
performance, or achievements to differ materially from those
expressed in or implied by any of the forward-looking statements.
Other unknown or unpredictable factors also could harm City’s
results.
All forward-looking statements attributable to City, or persons
acting on City’s behalf, are expressly qualified in their entirety
by the cautionary statements set forth above. Forward-looking
statements speak only as of the date they are made and City does
not undertake or assume any obligation to update publicly any of
these statements to reflect actual results, new information or
future events, changes in assumptions, or changes in other factors
affecting forward-looking statements, except to the extent required
by applicable laws. If City updates one or more forward-looking
statements, no inference should be drawn that City will make
additional updates with respect to those or other forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20181207005557/en/
For Further Information Contact:Charles R. Hageboeck, Chief
Executive Officer and President(304) 769-1102
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