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iAB financial bank to merge into First Merchants Bank & E Finance

2017-06-04 17:00 [BANK] Source:Netword
Guide:Thursday, February 23, 2017 7:47 AM Independent Alliance Banks Inc., the holding company of iAB Financial bank, and First Merchants Corporation jointly have announced an agreement whereby IAB will merge with and into First Merchants, and

Thursday, February 23, 2017 7:47 AM

Independent Alliance Banks Inc., the holding company of iAB Financial Bank/201706/0375.html">bank, and First Merchants Corporation jointly have announced an agreement whereby IAB will merge with and into First Merchants, and iAB Financial bank will merge with and into First Merchants Bank.

The announcement was made on Feb. 17 and the merger could become finalized late this year.

The merger agreement provides that shareholders of Independent Alliance Banks will have the right to receive 1.653 shares of First Merchants common stock for each share of IAB common stock owned.

Based on the closing price of First Merchants’ common stock on Feb. 16 of $42.10 per share, the implied price of IAB common stock is $69.59 per share.

On Nov. 21, 2016, First Merchants purchased 495,112 shares, or 12.1 percent, of IAB’s outstanding common stock from an IAB shareholder for $19.8 million in cash. Based on the closing price of First Merchants’ common stock on Feb. 16, the transaction value for the remaining shares of common stock, not owned by First Merchants, is approximately $251.3 million.

The transaction is expected to be completed in the third quarter of 2017, subject to the affirmative vote of IAB shareholders, regulatory approvals and other customary considerations.

The merger’s strategic highlights include:

▪ Combined assets of $8.3 billion, creating the second largest Financial holding company headquartered in Indiana.

▪ Serving customers from 122 banking offices in 31 Indiana counties, as well as two counties in both Ohio and Illinois.

▪ One of the largest trust organizations in Indiana.

▪ Second largest agribusiness portfolio in Indiana.

▪ Enhancing products, services and technological capabilities.

▪ Enhanced lending limits with local decision-making.

“Our bankers look forward to expanded New product capabilities and lending capacity in continuing to build relationships with our clients as First Merchants,” said Michael C. Marhenke, president and CEO of iAB Financial bank.

“We believe that our strategy to be a service-driven alternative to our super-regional bank competitors will support the acceleration of iAB’s current initiatives while furthering our goal of growing as a high-performing company,” said Michael C. Rechin, president and CEO of First Merchants.

,2017,Professional financial

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