First Capital to buy First Bancorp of Indiana in $33.2M deal
What's the deal? First Capital of Corydon, Indiana, has agreed to buy Evansville-based First Bancorp of IndianaDealroom has a profile for this one. Try Dealroom → for roughly $33.2 million in stock, per a securities filing. First Bancorp's subsidiary, First Federal Savings Bank, will merge into First Capital's First Harrison Bank.
The terms: First Bancorp shareholders will receive 0.3075 shares of First Capital stock for each share they own. The $33.2 million value reflects First Capital's 20-day volume-weighted average closing price of $63.05 per share.
What's the endgame? The merger would create a bank with roughly $1.88 billion in assets, $1.13 billion in loans, and $1.57 billion in deposits. It is expected to close in the first half of 2027, pending approvals.
Why now? The deal extends First Harrison's footprint across southern Indiana and western Kentucky. First Federal's 10 branches cluster around Evansville, a commercial hub for the region; First Harrison's 17 branches sit between Clarksville, Indiana, and greater Louisville, Kentucky.
What's being said? The expanded network "will allow us to attract additional talent, build meaningful customer relationships and grow our franchise," First Harrison chief executive officer Chris Frederick said. Michael Head, First Bancorp's president and CEO, will join the holding company's board and become a market president at First Harrison.
The bigger map: Indiana bank M&A has been busy. In July, First Financial Bancorp agreed to buy Munster-based Finward for about $208 million; in August, Terre Haute's First Financial Corp. agreed to acquire Illinois' First Illinois for about $111 million. Against those, First Capital's purchase is a smaller, footprint-building deal.
The signal: Community banks keep consolidating, trading independence for scale in lending and growth. First Capital's modest, regional play shows the trend running well below the headline-grabbing deals.
Read more: finance.yahoo.com
Image credit: greeblie
