Kentucky's Monticello Bankshares Inc. is buying Bluegrass Bancorp Inc. at a price roughly equal to the latter's shareholder equity, minus certain expenses, according to The Advocate-Messenger.
Danville-based Bluegrass Community Bank had $56.2 million in assets at the end of 2017; Monticello Banking Co. had $693.3 million.
Terms of the all-cash deal were not disclosed. For reference, however, SNL valuations for bank and thrift targets in the Midwest between Feb. 15, 2017, and Feb. 15, 2018, averaged 157.66% of book, 163.84% of tangible book and had a median of 18.93x last-12-months earnings, on an aggregate basis.
The merger, still subject to shareholder and regulatory approvals, is set to close in the second quarter. Bluegrass Chairman and President Lowery Anderson told the Advocate-Messenger both of Bluegrass' branches are likely to stay open after the acquisition. Monticello Bankshares is set to enter Boyle County with the two branches, where it will rank third with a 8.66% share of approximately $613.6 million in total market deposits.
ProBank Austin, with Christopher Lee Hargrove as lead banker, served as Bluegrass' financial adviser in the transaction.
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