Porter Bancorp subsidiary PBI Bank has signed a definitive agreement to acquire Lexington-based Paramount Bank for $5 million in cash.
“The proposed acquisition of Paramount Bank will accelerate our penetration into the fast-growing Lexington market,” said Maria L. Bouvette, president and CEO of Louisville-based Porter Bancorp. “Paramount has a great office location in Lexington that will provide us with a prominent presence in this market. The new branch will also be a strong complement to the office we opened in Lexington in June of this year.”
Since July 2007, Paramount has operated as a division of SCB Bank, the bank subsidiary of Indiana-based Blue River Bancshares, Inc. Prior to that, it operated as a stand-alone federal savings association.
Bouvette added that she expects the Paramount acquisition to provide a “significant jump start” to Porter’s development in the Lexington market, which ranks as the second-largest market in the state.
With $1.2 billion assets as of Sept. 30, 2007, Porter is the state’s seventh-largest independent banking organization based on total assets domiciled in the commonwealth. PBI Bank operates banking offices in Louisville and 17 other Kentucky communities along the Interstate 65 corridor.