pair of Louisville, Ky., companies are joining forces, with Stock Yards Bancorp, Inc., acquiring Commonwealth Bancshares in a cash and stock deal worth $153 million.
The combined franchise will serve customers through 79 branches with total assets of approximately $7.4 billion, $4.9 billion in gross loans, $6.4 billion in deposits and $7.0 billion in trust assets under management.
Commonwealth Bank & Trust has $1.3 billion in assets, $733 million in loans, $1.1 billion in deposits and $86 million in tangible common equity. It has 16 branches including 10 branches in Jefferson County, four in Shelby County and two in northern Kentucky. It also has a wealth management and trust department with assets under management of $2.6 billion.
“The transaction builds upon our market share in the Louisville market, as Commonwealth is the largest privately-held bank headquartered in the Louisville MSA, while also expanding our presence in Shelby County and northern Kentucky,” said James Hillebrand, chair and CEO of the $6.1 billion Stock Yards. “Additionally, and just as important, this combination significantly bolsters our wealth management capabilities, adding $2.6 billion in wealth and trust assets, and making Stock Yards the largest bank-owned Trust company in the state.”
Commonwealth director Laura Wells will join the Stock Yards board after the deal closes in the fourth quarter.
“Both banks have always been focused on providing great customer service, a strong commitment to the communities where they operate and an excellent environment for employees to perform and advance,” said Commonwealth President/CEO John Key. “We look forward to working with the management team at Stock Yards to create the leading community bank in the region.”
Stephens Inc. served as financial advisor and Frost Brown Todd PLLC acted as legal counsel to Stock Yards. Keefe Bruyette & Woods, A Stifel Company, served as financial advisor and Squire Patton Boggs acted as legal counsel to Commonwealth.