First Merchants, Independent Alliance Banks sign merger agreement.
BANKING AND CREDIT NEWS-February 21, 2017-First Merchants, Independent Alliance Banks sign merger agreement
(C)2017 M2 COMMUNICATIONS http://www.m2.com
First Merchants Corporation (NASDAQ: FRME) and Independent Alliance Banks, Inc. (OTCQX: IALB) (IAB) have executed a definitive agreement whereby IAB will merge with and into First Merchants, and its wholly owned bank subsidiary, iAB Financial Bank (iAB), will merge with and into First Merchants Bank, the company said.
Headquartered in Fort Wayne, Indiana, IAB operates 16 banking center locations in the Fort Wayne area. IAB was formed in 2005 as a result of the combination of two longstanding banks; Grabill Bank and MarkleBank.
IAB has total assets of USD 1.1bn, total loans of USD 753m, and total deposits of USD 861m (91% of which are core) and also earned a 0.94% return on average assets and 9.57% return on tangible common equity in 2016.
Additionally, as of June 30, 2016, IAB had approximately USD 646m of deposits in the Fort Wayne, Indiana Metropolitan Statistical Area, ranking it fifth in deposit market share with 8.3% of the market.
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 conditions.
The combined company, doing business as First Merchants Bank, expects to complete its integration during the fourth quarter of 2017.
SunTrust Robinson Humphrey and Sandler O'Neill & Partners, L.P. served as financial advisors to First Merchants and legal advisor was Bingham Greenebaum Doll LLP.
ProBank Austin served as financial advisor to IAB in this transaction and Shumaker, Loop & Kendrick, LLP served as legal advisor to IAB.
Independent Alliance Banks, Inc. and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Independent Alliance Banks, Inc. in connection with the proposed merger. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement regarding the proposed merger when it becomes available.
((Comments on this story may be sent to firstname.lastname@example.org))
|Printer friendly Cite/link Email Feedback|
|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Feb 21, 2017|
|Previous Article:||Silvercrest Asset Management Group approves quarterly dividend.|
|Next Article:||Investors urge banks to support re-routing Dakota access pipeline.|