CHCO » Topics » A CQUISITION OF C LASSIC B ANCSHARES , I NC .

This excerpt taken from the CHCO 10-K filed Mar 7, 2006.

ACQUISITION OF CLASSIC BANCSHARES, INC.

On May 20, 2005, City completed the acquisition of Classic Bancshares (“Classic”) and the merger of Classic’s subsidiary, Classic Bank, into City National Bank. Classic operated 10 full-service branches located in Eastern Kentucky and Southeastern Ohio. The primary reason for the merger with Classic was for City National to expand its presence in the Huntington/Ashland WV-KY-OH Metropolitan Statistical Area (“MSA”). With the acquisition of Classic, the Company is now the largest commercial banking franchise in the Huntington/Ashland WV-KY-OH MSA. On May 20, 2005, Classic had total assets of $338 million, net loans of $254 million, deposits of $252 million, and $38 million of shareholders’ equity. The acquisition was accounted for using the purchase accounting method and the results of operations of Classic are included in the Company’s consolidated statement of income from the date of acquisition forward.

The aggregate purchase price for the acquisition was approximately $81 million and was consummated by the exchange of a combination of the Company’s common stock and cash for Classic’s common stock. The purchase was funded through the issuance of 1,580,034 shares of the Company’s common shares and cash consideration of $18.2 million from the Company’s available cash.

Additional information concerning the acquisition is contained in Note Two of Notes to Consolidated Financial Statements on page 35 of this Annual Report to Shareholders.

 

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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

 

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