Subsequent Event

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Subsequent Event

Subsequent Event

On July 1, 2019, the Company completed the acquisition of Citizens First Corporation (“Citizens First”) through the merger of Citizens First with and into the Company. Immediately following completion of the Citizens First holding company merger, Citizens First's subsidiary bank, Citizen First Bank, Inc., was merged with and into the Company’s subsidiary bank, German American Bank. Under the terms of the definitive merger agreement, the Company issued approximately 1.7 million shares of its common stock which resulted in approximately $50.1 million in total stock consideration and paid approximately $15.5 million in cash, in exchange for all of the issued and outstanding shares of common stock of Citizens First.

Citizens First is a bank holding company headquartered in Bowling Green, Kentucky. It operates, through Citizens First Bank, Inc., branch offices in Barren, Hart, Simpson and Warren Counties in Kentucky. At March 31, 2019, Citizens First reported total assets of approximately $472.1 million, total loans of approximately $377.9 million, and total deposits of approximately $381.8 million.

The acquired assets and liabilities will be recorded at fair value at the date of acquisition and will be reflected in the September 30, 2019 financial statements as such; however, at the time of these financial statements, the appraisals and valuations are incomplete. The Company expects to record goodwill and a core deposit intangible in regards to this transaction based on earlier estimates, but the amount is not known as the initial fair value accounting is incomplete. The goodwill will not be deductible for tax purposes.

This acquisition is consistent with the Company's strategy to build a regional presence in central and western Kentucky. The acquisition offers the Company the opportunity to increase profitability by introducing existing products and services to the acquired customer base as well as add new customers in the expanded region.