Republic Bancorp, through its subsidiary, Republic Bank & Trust Company (RB&T) has purchased all of the assets and liabilities of First Commercial Bank (FCB) from the Federal Deposit Insurance (FDIC), bolstering its presence in the Minneapolis market, Minnesota.
Under the terms of the acquisition, RB&T will get nearly $207m in deposits and loans and other real estate with a book value of about $194m, at a discount of $79m.
The purchaser bank said that the deal is being furnished through a purchase and assumption agreement with the FDIC, without loss sharing agreements.
RB&T did not pay a deposit premium nor acquire any assets or liabilities of FCB’s parent holding company, Commercial Bancshares, or any of its privately held stock.
Republic Bank & Trust Company chairman and CEO Steve Trager said the bank’s strong capital and successful past performance helps to serve its customers for many years to come.
"Most importantly, with the support of the banking industry and the FDIC, all client deposits will be protected and all depositors will have prudent access to their funds," Trager added.
The transaction is anticipated to be immediately accretive to Republic’s net income, diluted earnings per common share and book value per common share.
Headquartered in Louisville, Kentucky, US, Republic Bancorp is a $3.3bn bank holding company, which operates at 43 locations in Kentucky, Indiana, Ohio, Florida and Tennessee, and Republic.