Banking group First Financial Service has signed a definitive agreement to acquire FSB Bancshares and its wholly owned subsidiary, The Farmers State Bank, located in southern Indiana, US.
The branches of The Farmers State Bank will become branches of First Financial Service’s wholly owned subsidiary First Federal Savings Bank. Under the terms of the agreement, FSB Bancshares shareholders will receive an aggregate $14 million in cash proceeds.
The transaction has been unanimously approved by the boards of directors of both companies and is subject to regulatory approval, the approval of FSB Bancshares’s shareholders and other customary closing conditions.
The acquisition is expected to be completed during the second quarter of 2008 and is expected to be accretive to First Financial Service’s earnings during the first full year of the combined operations.
Keith Johnson, CEO of First Financial Service, said: The Farmers State Bank’s associates share the same passion as we do for exceeding customer expectations. We are excited to have the associates join our team. We have been an active commercial lender in Indiana for several years.