Monday, May 22, 2017
MUNCIE, Ind. & FORT WAYNE, Ind.--(BUSINESS WIRE)-- First Merchants Corporation (NASDAQ:FRME) and Independent Alliance Banks, Inc. (OTCQX:IALB) (IAB) today announced they 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.
MUNCIE, Ind. & COLUMBUS, Ohio--(BUSINESS WIRE)-- First Merchants Corporation (NASDAQ: FRME) successfully completed its previously announced merger with The Arlington Bank of Columbus, Ohio on May 19, 2017. In connection with the merger, The Arlington Bank has merged with and into First Merchants Bank. The combined First Merchants Bank now has 108 banking centers in Illinois, Indiana and Ohio and approximately $7.6 billion in assets, $5.5 billion in loans, $5.9 billion in deposits, and total shareholders’ equity of $1.0 billion. The full integration of The Arlington Bank under the First Merchants brand is expected to be completed during the 3rd quarter of 2017.
As part of the $82.6 million merger, shareholders of The Arlington Bank will receive 2.7245 shares of First Merchants Corporation common stock for each share of The Arlington Bank common stock held. The former shareholders of The Arlington Bank will receive information shortly on how to complete the exchange of their Arlington Bank stock.
Michael C. Rechin, First Merchants Corporation's Chief Executive Officer stated, "We are pleased that this merger received overwhelming approval by The Arlington Bank shareholders. The Arlington 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 three locations to our seven banking centers in Columbus, Ohio, one of the fastest growing markets in the country. With the legal aspects of the merger behind us, we can exclusively focus our attention on taking care of our clients."
James R. DeRoberts, Chairman and CEO of The Arlington Bank, 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 Upper Arlington and Grandview markets. We have a deep-rooted commitment to community banking by providing personalized financial service solutions to retail and mortgage customers.”
Thomas C. Westfall, The Arlington Bank’s President 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. For nearly 20 years, our associates and management team have been driven to be the bank of choice in Upper Arlington and Grandview. Our bankers look forward to taking advantage of new product capabilities and continuing to build momentum with our clients as First Merchants. The core values of both companies share a commitment to local decision making, personal service, long-term relationships and community involvement." Mr. Westfall will continue in a leadership position with First Merchants working to insure a seamless transition and achieving the growth goals for the Columbus, Ohio market.
Under the leadership of Jennifer M. Griffith, First Merchants Bank’s Ohio Region President, the bank will have ten full-service banking centers in the Columbus, Ohio, marketplace and nearly $1 billion in loans extended to central Ohio clients.
Ms. Griffith stated, “This is a tremendous opportunity to join great teams in vibrant neighborhoods. The Arlington Bank’s deep roots in the community have been a differentiator and we’re committed to strengthening those ties together. The people make the difference and we know we have a winning combination. I look forward to working with Tom to continue building our bank together.”
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 as Lafayette Bank & Trust 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 proposed merger (the “Merger”) between First Merchants Corporation (“First Merchants”) and The Arlington Bank, 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 The Arlington Bank 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; the ability to obtain required governmental and shareholder approvals, 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 The Arlington Bank 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 The Arlington Bank’s past results of operations do not necessarily indicate either of their anticipated future results, whether the Merger is effectuated or not.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170522005706/en/
First Merchants Corporation
David L. Ortega, 765-378-8937
First Vice President/Director of Investor Relations
Source: First Merchants Corporation