Investment Banking - Victory Community Bank

Transactions | Banking

Client: Victory Community Bank
Industry: Banking
Transaction Type: Mergers & Acquisitions
Role: Sell-Side Advisor

Heartland BancCorp to Acquire Northern Kentucky/Cincinnati-Focused Victory Community Bank

  • Heartland BancCorp (OTCQX: HLAN) (“Heartland”) is an Ohio bank holding company and is the parent of Heartland Bank, which operates 16 full-service banking offices and TransCounty Title Agency, LLC. As of September 30, 2019, Heartland had $1.14 billion in assets, $881.1 million in loans and $975.4 million in deposits.
  • Victory Community Bank (Fort Mitchell, Kentucky) is a 16-year old community bank that serves the Greater Cincinnati area and Northern Kentucky, with a focus on residential mortgage lending. At September 30, 2019, Victory Community Bank had assets of $179.2 million, loans of $153.6 million and deposits of $136.7 million with three banking locations in Boone, Kenton and Campbell counties in Kentucky.
  • Under the terms of the merger agreement, Victory Bancorp (as the sole shareholder of Victory Community Bank) will receive 58,934 shares of Heartland common stock and $35.5 million in cash, subject to adjustment as set forth in the merger agreement, for all shares of Victory Community Bank common stock, resulting in an aggregate transaction value of approximately $41.1 million based on the closing price of Heartland common stock on November 29, 2019. The merger consideration represents approximately 161.3% of Victory Community Bank’s tangible book value as of September 30, 2019.
  • Upon completion of the transaction, John G. “Jack” Kenkel, Jr., currently President and CEO of Victory Community Bank, will join Heartland’s Board of Directors.
  • The transaction is expected to close in the second quarter of 2020.
  • Boenning is serving as financial advisor to Victory Community Bank.

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