The parent company of Central Kentucky Federal Savings Bank in Danville and Lancaster has announced it will merge into Kentucky First Federal Bancorp, the parent of banks in Hazard and Frankfort. The deal is valued at about $10.8 million.
Central Kentucky Federal Savings Bank will continue to operate under its name as a division of First Federal Savings Bank of Frankfort, the companies said in a joint statement.
Under the terms approved by both banking companies' boards, each shareholder of CKF Bancorp can receive either $9.50 in cash for each share, a number of shares of Kentucky First common stock, or a combination of cash for 40 percent of shares and stock for 60 percent of shares.
"We believe this combination presents a tremendous opportunity to expand our presence in Kentucky, particularly in Boyle County and Garrard County, where neither First Federal of Hazard nor First Federal of Frankfort currently maintains branches," said Tony D. Whitaker, CEO of Kentucky First, in the statement.
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William H. Johnson, CEO of CKF Bancorp, added, "We are proud to join with a partner who we are confident shares our long-standing commitment to the communities we serve."
Kentucky First Federal Bancorp is the parent company of First Federal Savings and Loan Association of Hazard, which operates a bank in Hazard, and First Federal Savings Bank of Frankfort, which operates three branches in Frankfort. Its shares are traded on the Nasdaq Global Market under the symbol KFFB.
The merger must be approved by CKF Bancorp shareholders and regulators. The companies expect the transaction to close in the second quarter or third quarter of 2012.