German American Bancorpand and Heartland BancCorp have announced that they have entered into a definitive agreement to merge Heartland into German American. Following this announcement, upon the completion of the transaction, Heartland’s subsidiary bank, Heartland Bank, is set to be merged into German American’s subsidiary bank, German American Bank.

In addition, it will also operate under a co-branded name within the Ohio markets. Both financial institutions will continue to focus on meeting the needs, preferences, and demands of clients and customers in an ever-evolving market, while also prioritising the process of remaining compliant with the regulatory requirements and laws of the local industry. More information on the announcement Under the terms and conditions of the definite agreement, Heartland shareholders will receive 3.90 shares of German American common stock for each share of Heartland common stock in a secure, all-stock, and tax-free exchange.

The share is set to be held by the Heartland retirement plan and to be exchanged for an equivalent cash payment. The partnership is expected to bring together two community-oriented organisations, as well as expand German American’s footprint into Columbus and Cincinnati, Ohio, two fastest-growing markets in the Midwest. At the same time, German American’s pro forma capital ratios are set to continue to meet regulatory well-capitalised levels by providing ongoing financial strength and future development opportunities.

The all-stock transaction was approved unanimously by each company’s board of directors and is set to close in the first quarter of 2025, being subject to regulatory approval. This includes approval by both German American and Heartland shareholders and the completion of other customary closing conditions. .