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Farmers Deposit Bank sells

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By Lee Kendall

Lee Kendall,
News Writer
lkendall@cynthianademocrat.com

The Farmers Deposit Bancorp, Inc., board of directors have entered into an agreement with City Holding Company to sell three banking sites to the Charleston, West Virginia, parent company of City National Bank of West Virginia.
City Holding Company made the announcement of the impending sale on July 11. The merger will include the main office of Farmers Deposit Bank in Cynthiana, along with another Cynthiana branch and one in Carlisle.
Earlier, the Paris branch of Farmers Deposit Bank was closed as the lease to the building it was located in was not renewed.
“We did not sell any customers from the Paris branch to a purchasing bank, we simply absorbed them into either the Carlisle or Cynthiana banks,” explained Brent Hoptry, president and CEO of Farmers Bancorp, Inc. “The building in Paris was leased by Traditional Bank, but again, they did not purchase any of our assets or customers.”
City National Bank has 86 branches across West Virginia, Virginia, Kentucky and Ohio that provide a full range of banking services to individuals, businesses and industries.
City National Bank, as of March 31, 2018, had $4.2 billion in total assets, $3.4 billion in deposits and $3.1 billion in gross loans.
Farmers Deposit Bancorp, Inc., is the parent company of Farmers Deposit Bank and its two branches. As of March 31, 2018, It had total assets of $122 million, $98 million in deposits, and $60 million in gross loans.
Subject to the terms of the Farmers Deposit merger agreement, Farmers Deposit shareholders will receive $24.9 million in cash for all outstanding shares of Farmers Deposit common stock.
“This merger with City is an excellent opportunity for our organization to become part of a successful and established institution,” said Hoptry in a press release announcing the merger. “With our combined markets and leadership, we will continue to provide high-quality banking solutions for our communities and remain well positioned for the future.”
Hoptry said the only shareholder of Farmers Deposit Bancorp, Inc., was the late Jim Brown.
“Mr Brown had 100 percent ownership in the bank,” Hoptry explained. “So the sale of the bank will proceed, after all the normal regulatory issues are looked at and approved.”
All of the proceeds from the liquidation of Brown Enterprises properties, including the impending sale of the bank, will automatically be funneled into the Jim and Martha Brown Charitable Foundation.
“I cannot respond to what will happen to the proceeds once they go into the Foundation,” Hoptry said. “That is outside my area of responsibility, entirely. I am not certain if the Foundation is up and running yet, but am sure it will be at some point soon.”
Besides Farmers Deposit Bank, City Holding also acquired Poage Bankshares, Inc., the parent company of Town Square Bank, Ashland, Ky., which was founded as a savings and loan association in 1889.
Poage operates nine branches and one loan production office across northeastern Kentucky. As of March 31, 2018, Poage had $450 million in total assets, $375 million in deposits and $333 million in gross loans.
Once the merger is completed, Hoptry anticipates very little change for the customers being served by City Holding Company.
“We are still in negotiations with them, and there will be some changes in personnel, but as far as the front-line people that serve the public on a daily basis, I am pretty certain those people will stay the same,” Hoptry said. “Those of us on the back-line, there might be some changes in titles and responsibility, and maybe even some people will be asked to relocate, but we are still talking with them about those issues.”