Thursday, First Farmers Financial Corp. signed a definitive merger agreement with CB Bank Shares, the holding company for Central Bank.
Gene Miles, president and CEO of First Farmers Bank and Trust, said the merger means Central Bank will now be known as First Farmers Bank and Trust.
Headquartered in Converse, First Farmers is a wholly owned subsidiary bank. The transaction combines central Indiana’s two oldest banking institutions.
Financial terms of the transaction were not announced, and Miles said he expects the transaction will close late in the fourth quarter of 2009 or early in 2010.
“This adds to our strength,” said Miles. “[Central Bank] is on the west side of Howard County and it fits in with us.”
Central Bank is headquartered in Russiaville.
“We are very pleased to announce this agreement,” continued Miles. “Our banking philosophy and commitment to community banking in central Indiana fits perfectly with those of Central Bank. We feel that our combined staffs will be in an excellent position to provide comprehensive financial services to clients in the heart of our branch network.
“Like First Farmers, Don Smith [president of Central Bank] and Central Bank are recognized as leaders in furthering the goals of community banking. They have a history of supporting Howard County and central Indiana.”
The acquisition gives First Farmers 20 branches in Indiana, more than $730 million in assets, and gross capital of more than $75 million.
Miles said the merger makes the organization the largest privately held deposit holder in Howard County, with $165 million at five branch locations.
Currently, Central Bank operates two bank locations in Russiaville and Kokomo with assets of $55 million.
“Both Central Bank and First Farmers have upheld the traditions and service expectations of community banking, and our clients will now be able to appreciate a wider variety of bank products without compromising the high degree of personalized service that they now receive,” Smith said.
It was not announced if any work force changes are expected, nevertheless, the merger allows First Farmers to continue doing what it does best: Serving the community’s banking needs, said Miles.
“We expect with the talent we have in place in Howard County, we will continue to exemplify community banking with a premium placed on customer communication and personalized service,” said Miles. “Our strong capital position gives us an excellent opportunity to give this staff the tools to grow our business. We’re excited about the future of our combined operations.”
• K.O. Jackson is the Tribune’s business writer. He can be reached at (765) 854-6739 or via e-mail kirven.jackson@kokomotribune.com
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