Indiana-based MutualFirst Financial has agreed to acquire local lender Universal Bancorp, the parent of BloomBank, in a cash-stock deal worth around $65.6m.
BloomBank will be merged with MutualFirst’s wholly owned subsidiary MutualBank following the completion of the deal. The merged entity will have $2bn in assets.
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“The merger is expected to be accretive to MutualFirst’s earnings per share in 2018 and with cost savings fully implemented in 2019 the accretion is projected to be approximately 13%,” MutualFirst said in a statement.
The acquisition will expand MutualFirst’s branch network to 40, and will expand its footprint into Central and Southern Indiana. The deal is expected to be completed in the first quarter of 2018, subject to regulatory and shareholders’ approval.
MutualFirst president and CEO Dave Heeter said: “Merging with Universal is a very beneficial transaction that will enable us to increase the value of the franchise for the benefit of our shareholders. We will continue to pursue all strategies available to maintain and improve financial performance in order to maximize shareholder value.”
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