Stock Yards to Acquire Commonwealth Bank & Trust
Stock Yards Bank & Trust announced Tuesday that it has entered into a definitive agreement to acquire Commonwealth Bank & Trust.
Both financial institutions are based in Louisville with locations in Northern Kentucky.
“As community bankers, we need to take the initiative to build relationships and earn the trust of the people we serve,” said Stock Yards Bank Chairman and CEO James A. (Ja) Hillebrand. “This acquisition is further proof that Stock Yards Bank is dedicated to growing with the evolving needs of our customers, adding scale, security and strength while staying in line with our existing values.”
The combined stock and cash transaction with Commonwealth Bancshares, Inc., representing a total consideration of approximately $153 million, is expected to close during the fourth quarter of 2021, subject to completion of customary regulatory approval and closing conditions.
“The mutual admiration and collaboration between these two banks goes back many years,” said Commonwealth Bank President and CEO John W. Key. “This acquisition brings us together to create a premier financial institution unlike anything that this region has ever seen. I truly believe this will be transformational for our Commonwealth Bank customers and the communities we serve.”
Key will join Stock Yards Bank in a senior management position as director of strategic initiatives and will serve as a voting member of the company’s Executive Loan Committee, Strategic Planning Committee and Operations Committee.
Commonwealth operates sixteen branches including one in Edgewood and one in Florence. It has over $1.3 billion in bank assets and manages $2.6 billion in wealth management and trust assets.
The combined banks will service customers through 79 branches with total assets of approx. $7.4 billion, $4.9 billion in gross loans, $6.4 billion in deposits and $7 billion in trust assets under management.
Stock Yards has six Greater Cincinnati locations, with one in Florence and one in Highland Heights. Four others are on the Ohio side.
“Community banking isn’t about size, it’s about service,” said Hillebrand. “Both of these banks understand that relationships are more important than assets. Together, we will be more nimble and powerful to help more consumers and businesses in this region to meet their financial goals.”
The announcement said that Commonwealth Bank customers will have more locations and expanded services. Many of the same bankers will remain employed following the transition, the announcement said.
This is Stock Yards Bank’s second major acquisition of 2021 following the recent acquisition of Kentucky Bank.
Photo of Edgewood branch via Commonwealth Bank & Trust