Republic Bancorp, Inc. (NASDAQ: RBCAA) (“Republic” or the “Company”), through its subsidiary, Republic Bank & Trust Company (“RB&T”), is pleased to announce that it has expanded into the Minneapolis, Minnesota market by acquiring substantially all of the assets and liabilities of First Commercial Bank (“FCB”) from the Federal Deposit Insurance Corporation (“FDIC”).
In addition to assuming approximately $207 million in deposits of FCB (both insured and uninsured), RB&T acquired loans and other real estate owned with a book value of approximately $194 million, at a discount of $79 million. The acquisition is being completed through a purchase and assumption agreement with the FDIC, without loss sharing agreements. RB&T did not pay a deposit premium and did not acquire any assets or liabilities of FCB’s parent holding company, Commercial Bancshares, Inc. or any of its privately held stock.
“We welcome FCB’s clients to the Republic family,” said Steve Trager, Chairman and CEO of Republic. “We are excited and committed to serving our new clients in the Minneapolis area with the same level of accountability and responsiveness that we have built the Republic name upon. Our industry strong capital and successful past performance helps ensure our commitment to be there for our customers today, tomorrow and 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.”
This transaction is expected to be immediately accretive to Republic’s net income, diluted earnings per common share and book value per common share. Upon completion of the acquisition, RB&T will continue to be “well capitalized” under applicable bank regulatory standards and will require no additional capital to complete this transaction.“This represents the second FDIC-assisted transaction that we have completed in 2012. We look forward to leveraging the knowledge we gained from our acquisition of Tennessee Commerce Bank in January to make this a seamless and successful transition for FCB’s clients,” further said Trager.