First Merchants Corporation Completes its Merger with Independent Alliance Banks, Inc.
July 17 2017 - 07:49AM
Business Wire
First Merchants Corporation (NASDAQ: FRME) (“First Merchants”)
successfully completed its previously announced merger with
Independent Alliance Banks, Inc. (OTCQX: IALB) (“IAB”) of Fort
Wayne, Indiana on July 14, 2017. In connection with the merger, iAB
Financial Bank has merged with and into First Merchants Bank. The
combined First Merchants Bank now has 122 banking centers in
Illinois, Indiana and Ohio and approximately $8.7 billion in
assets, $6.2 billion in loans, $6.7 billion in deposits, and total
shareholders’ equity of $1.1 billion. The full integration of IAB
under the First Merchants brand is expected to be completed during
the 4th quarter of 2017.
Shareholders of IAB will receive 1.6530 shares of First
Merchants Corporation common stock for each share of IAB common
stock held. On November 21, 2016, First Merchants purchased 495,112
shares or 12.1% of IAB’s outstanding common stock for $19.8
million. Based on the closing price of First Merchants’ common
stock on July 14, 2017, the transaction value for the remaining
shares is approximately $238.9 million. The former shareholders of
IAB will receive information shortly on how to complete the
exchange of their IAB stock.
Michael C. Rechin, First Merchants Corporation's Chief Executive
Officer stated, "We are pleased that this merger received
overwhelming approval by Independent Alliance Banks, Inc.’s
shareholders. We are fortunate to have found such an outstanding
partner and team to join with in the Fort Wayne area, one of the
fastest growing cities in Indiana. iAB Financial Bank clients will
now have access to expanded product and service options along with
the additional capital resources and lending capacity that First
Merchants provides. The merger will add sixteen locations in the
“Summit City” area, making banking more convenient for our clients.
With the legal aspects of the merger behind us, we can exclusively
focus our attention on taking care of our clients."
Michael C. Marhenke, Chief Executive Officer and President of
Independent Alliance Banks, Inc., stated, “We look forward to being
a part of First Merchants and working with Mike Rechin and his team
to bring the best of both organizations to the Fort Wayne market.
We have a deep-rooted commitment to community banking by providing
personalized financial service solutions for our clients in the
Fort Wayne market.”
William H. Thatcher, Independent Alliance Banks, Inc.’s Chief
Operating Officer added, "We are excited about becoming part of the
First Merchants family, and believe this partnership benefits our
clients, shareholders and communities. Our clients will now have
access to a broader network and expanded products and services,
while still enjoying community banking service delivered by people
they know and trust. Our associates and management team have been
driven to be the bank of choice in Fort Wayne and our bankers look
forward to taking advantage of new product capabilities and
continuing to build momentum with our clients as First Merchants
Bank. The core values of both companies share a commitment to local
decision making, personal service, long-term relationships and
community involvement." Mr. Thatcher assumes the role of Regional
President with First Merchants Bank, working to insure a seamless
transition and achieving the growth goals set for the Fort Wayne
region.
About First Merchants
Corporation
First Merchants Corporation is a financial holding company
headquartered in Muncie, Indiana. The Corporation is comprised of
First Merchants Bank, which also operates Lafayette Bank &
Trust, The Arlington Bank, and First Merchants Private Wealth
Advisors as divisions of First Merchants Bank
First Merchants Corporation’s common stock is traded on the
NASDAQ Global Select Market System under the symbol FRME.
Quotations are carried in daily newspapers and can be found on the
company’s Internet web page (http://www.firstmerchants.com).
Forward Looking
Statement
This press release contains forward-looking statements made
pursuant to the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements can
often, but not always, be identified by the use of words like
“believe”, “continue”, “pattern”, “estimate”, “project”, “intend”,
“anticipate”, “expect” and similar expressions or future or
conditional verbs such as “will”, would”, “should”, “could”,
“might”, “can”, “may”, or similar expressions. These
forward-looking statements include, but are not limited to,
statements relating to the expected timing and benefits of the
merger (the “Merger”) between First Merchants Corporation (“First
Merchants”) and Independent Alliance Banks, Inc., including future
financial and operating results, cost savings, enhanced revenues,
and accretion/dilution to reported earnings that may be realized
from the Merger, as well as other statements of expectations
regarding the Merger, and other statements of First Merchants’
goals, intentions and expectations; statements regarding the First
Merchants’ business plan and growth strategies; statements
regarding the asset quality of First Merchants’ loan and investment
portfolios; and estimates of First Merchants’ risks and future
costs and benefits, whether with respect to the Merger or
otherwise. These forward-looking statements are subject to
significant risks, assumptions and uncertainties that may cause
results to differ materially from those set forth in
forward-looking statements, including, among other things: the risk
that the businesses of First Merchants and Independent Alliance
Banks, Inc. will not be integrated successfully or such integration
may be more difficult, time-consuming or costly than expected;
expected revenue synergies and cost savings from the Merger may not
be fully realized or realized within the expected time frame;
revenues following the Merger may be lower than expected; customer
and employee relationships and business operations may be disrupted
by the Merger; and the ability to complete the Merger on the
expected timeframe; possible changes in economic and business
conditions; the existence or exacerbation of general geopolitical
instability and uncertainty; the ability of First Merchants to
integrate recent acquisitions and attract new customers; possible
changes in monetary and fiscal policies, and laws and regulations;
the effects of easing restrictions on participants in the financial
services industry; the cost and other effects of legal and
administrative cases; possible changes in the credit worthiness of
customers and the possible impairment of collectability of loans;
fluctuations in market rates of interest; competitive factors in
the banking industry; changes in the banking legislation or
regulatory requirements of federal and state agencies applicable to
bank holding companies and banks like First Merchants’ affiliate
bank; continued availability of earnings and excess capital
sufficient for the lawful and prudent declaration of dividends;
changes in market, economic, operational, liquidity, credit and
interest rate risks associated with the First Merchants’ business;
and other risks and factors identified in each of First Merchants’
filings with the Securities and Exchange Commission. Neither First
Merchants nor Independent Alliance Banks, Inc. undertake any
obligation to update any forward-looking statement, whether written
or oral, relating to the matters discussed in this presentation or
press release. In addition, First Merchants’ and Independent
Alliance Banks, Inc.’s past results of operations do not
necessarily indicate either of their anticipated future
results.
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version on businesswire.com: http://www.businesswire.com/news/home/20170717005591/en/
First Merchants CorporationDavid L. Ortega, 765-378-8937First
Vice President / Director of Investor Relations
First Merchants (NASDAQ:FRME)
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