First Federal hangs on to Louisville branches

The First Federal Savings Bank company will include four Louisville branches for the time being, now that a deal to sell the branches has fallen apart.

First Security Bank of Owensboro Inc. no longer plans to purchase the four Louisville branches of First Federal Savings Bank. The bank has terminated the branch purchase agreement with First Federal’s parent company, First Financial Service Corp.

The Owensboro bank couldn’t raise the necessary capital from its investors to make the purchase, First Financial President Greg Schreacke said.

Schreacke said First Federal is in a better position now than it was a year ago when it first decided to sell the four branches, so it doesn’t have to make any specific decisions now.

“At this point we’re kind of evaluating where we are,” he said.

The sale of the four branches would have gone toward the capital level that First Federal officials would like to have, Schreacke said. That’s the main impact of the agreement termination.

The bank sold its four branches in southern Indiana in February. Besides branches in Hardin County, the bank has locations in Nelson, Bullitt, Hart and Meade counties.

Kelly Cantrall can be reached at (270) 505-1747 or kcantrall@thenewsenterprise.com.