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).