THE BANK OF KENTUCKY, INC.
SIGNS PURCHASE AND ASSUMPTION AGREEMENT WITH
UNITED KENTUCKY BANK OF PENDLETON COUNTY, INC.
Purchase Will Enhance Position as
Northern Kentucky’s Leading Community Bank
CRESTVIEW
HILLS, KENTUCKY, July 1, 2011 – The Bank of Kentucky
Financial Corporation (NASDAQ: BKYF) headquartered in Crestview
Hills, Kentucky announced that its subsidiary, The Bank of
Kentucky, Inc. (“The Bank of Kentucky”), executed a
purchase and assumption agreement with the United Kentucky Bank of
Pendleton County, Inc. (“United Kentucky Bank”) on June
30, 2011.
Under the terms
of the purchase and assumption agreement, The Bank of Kentucky will
assume approximately $26 million of deposit liabilities, as well as
other expressly identified liabilities, and purchase certain
assets, including United Kentucky Bank’s Falmouth, Kentucky
office and ATM and $14 million in selected loans, from United
Kentucky Bank.
“We look
forward to welcoming the customers of United Kentucky Bank to The
Bank of Kentucky family,” said Robert W. Zapp, President and
CEO of The Bank of Kentucky. “The Bank of Kentucky is a vital
and contributing member of the communities in which we do business,
and it is with great excitement and anticipation that we expand our
services into Pendleton County.”
“ We are excited to partner with The Bank of
Kentucky and that they will continue to offer the same personalized
service that United Kentucky Bank customers are accustomed to
receiving, said Carol F. Houchen, Chairman of the United Kentucky
Bank.
Upon closing
the transaction, The Bank of Kentucky will pay a $300,000 (or
approximately 1.1%) deposit premium for the deposit liabilities,
while the loans will be acquired at book value, less applicable
reserves. All other assets will be purchased at their book values.
The transaction is subject to regulatory approval and customary
closing conditions. The parties expect the transaction
to close during the fourth quarter of 2011.
