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THE FARMERS BANCORP FRANKFORT INDIANA ANNOUNCES ITS OFFER TO PURCHASE SHARES OF COMMON STOCK THROUGH A TENDER OFFER

9 East Clinton Street
Frankfort, IN  46041
Tel. 765-654-8731

For Immediate Release:  March 1, 2022                                                               

Contact:  Karen F. Gregerson, President
             Chad Kozuch, Senior Vice President

THE FARMERS BANCORP FRANKFORT INDIANA ANNOUNCES ITS OFFER TO PURCHASE SHARES OF COMMON STOCK THROUGH A TENDER OFFER

Frankfort, Indiana, OTCPINK: FABP                                                                                          

The Farmers Bancorp Frankfort Indiana (“Farmers”), the parent holding company of The Farmers Bank, Frankfort, Indiana (the “Bank”), today announced its offer to purchase up to 138,889 shares of its common stock at a purchase price of $54.00 per share for a total price of up to $7,500,000.00 (the “Tender Offer”).

Karen F. Gregerson, President of Farmers, stated, “We are excited to announce this offer to purchase shares of common stock from our shareholders. The tender offer will further our objectives of increasing return on equity and earnings per share while also providing liquidity to our current shareholders. We are only able to conduct this tender offer because of the strong financial position we achieved through our great personal service and our dedication to the communities we serve.”

Farmers operates as the bank holding company for the Bank. Founded in 1876, the Bank is a full-service financial institution based in Clinton County, Indiana. In addition to its main office at 9 East Clinton Street, Frankfort, Indiana, the Bank operates a loan production office in Carmel and branches in Fishers, Frankfort, Kirklin, Lebanon, Michigantown, Mulberry, Noblesville, Rossville, and Sheridan.

As of March 1, 2022, shares of Farmers were trading on the OTC Pink marketplace for $49.00. The $54.00 offer price represents a 10.2% premium over the share price as of March 1, 2022. Shareholders will have until March 31, 2022 to properly tender their shares. Shareholders can withdraw validly tendered shares until March 24, 2022.

Neither Farmers nor its Board of Directors makes any recommendation to any shareholder as to whether to tender or refrain from tendering shares. Each shareholder must make his or her own decision whether to tender shares and, if so, how many shares to tender. Shareholders should review the Offer to Purchase and Letter of Transmittal in their entirety for all terms and conditions of the Tender Offer. We encourage shareholders to consult with their own investment, legal, and tax advisors regarding this matter.

Farmers files annual reports with the OTC Markets in accordance with the requirements of the OTC Markets. The website maintained by the OTC Markets contains information that Farmers has filed electronically with the OTC Markets. You may access this information at http://www.otcmarkets.com/. Farmers is also required to submit its own financial information to the Federal Reserve Board, semiannually. The FR Y-9 report forms are publicly available and accessible at https://www.ffiec.gov/npw/. Farmers will also provide access to this information at our main office, 9 East Clinton Street, Frankfort, Indiana 46041.

The Bank is required to submit quarterly call reports to the Federal Deposit Insurance Corporation that contain financial information regarding the Bank. Call reports are publicly available and accessible at https://cdr.ffiec.gov/. Additional financial information regarding Farmers and its subsidiary can be found on the Bank’s website: https://www.thefarmersbank.com/.

Performance Trust Capital Partners, LLC served as financial advisor to Farmers and assisted them in the determination by Farmers of an offer price. SmithAmundsen LLC served as legal counsel in the Tender Offer.

This press release contains certain forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of Farmers. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to differ materially from expected results include the COVID-19 pandemic, changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of Farmers and the Bank, and changes in the securities markets. Except as required by law, Farmers does not undertake any obligation to update any forward-looking statements to reflect changes in belief, expectations or events.