German American and Heartland BancCorp: A Merger for Growth and Expansion

German American Bancorp, Inc. (Nasdaq: GABC) has announced the successful completion of its merger with Heartland BancCorp and Heartland Bank, effective February 1, 2025. This strategic partnership brings together two high-performing, community-oriented organizations, expanding German American's footprint into the vibrant markets of Columbus and Cincinnati, Ohio. The merger is expected to be accretive to German American's earnings per share during the twelve months following the completion of the transaction, with a relatively quick tangible book value earn back period. Additionally, the combined organization's pro forma capital ratios are expected to continue to exceed regulatory well-capitalized levels, providing ongoing financial strength and future growth opportunities.

The merger terms include Heartland shareholders receiving 3.90 shares of German American common stock for each Heartland share, while Heartland 401(k) Plan holders will receive $161.19 per share in cash. The combined organization will operate a community branch network of 94 locations across Indiana, Kentucky, and Ohio, with approximately $8.3 billion in total assets as of December 31, 2024. This expanded footprint and increased asset base position German American for continued growth and success in the Midwest region.



G. Scott McComb, Chairman, President, and CEO of Heartland, will join the German American and German American Bank boards of directors, along with Ronnie R. Stokes, another Heartland board member. Many members of the Heartland Executive and senior teams will continue to serve the combined organization as regional management, providing local leadership and decision-making capabilities. This retention of key personnel and local decision-making authority is expected to facilitate a smooth transition and maintain the strong customer service reputation of both banks.

The cultural alignment between German American and Heartland, focusing on community banking and relationship-based services, is a significant factor contributing to the success of the merger and market penetration in Ohio. Both banks share a commitment to delivering exceptional customer experiences and investing in local communities, which has been a key aspect of Heartland's success in Ohio. This shared commitment is likely to propel the future success of the combined organization as it continues to serve the financial and investment needs of individuals and businesses throughout the Greater Columbus and Cincinnati communities.

In conclusion, the merger of German American Bancorp and Heartland BancCorp is a strategic move that positions the combined organization for continued growth and expansion in the Midwest region. With an expanded footprint, increased asset base, and a strong commitment to community banking and relationship-based services, German American is well-positioned to capitalize on the opportunities presented by the merger and deliver value to its shareholders.