First Merchants, the parent of First Merchants Bank, has agreed to acquire MBT Financial (MBTF). This will take the form of an all-stock transaction worth nearly $290.9m.
All MBTF shareholders will be entitled to receive 0.275 shares of First Merchants common stock for each share held.
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Also, following the completion of the deal, MBT Financial’s Monroe Bank & Trust will merge into First Merchants Bank.
First Merchants president and CEO Michael Rechin said: “Like First Merchants, Monroe Bank & Trust has a long history and a deep-rooted commitment to community banking and we are excited they have chosen to become the newest member of the First Merchants family.
“The MBTF franchise opens an entirely new contiguous banking market for us with a high-quality and prudently managed 160 year old institution.
“We believe that our strategy to be a service-driven alternative to our super-regional bank competitors will support the acceleration of Monroe Bank & Trust’s current initiatives while furthering our goal of growing as a high-performing company.”
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By GlobalDataMBTF
Established in 1858, MBTF has 20 branches in the south-eastern Michigan area. As of June 2018, the business had total assets of $1.3bn, loans of $733m and total deposits of $1.1bn.
The combined group will also have around $11bn in assets and 134 banking offices in Indiana, Michigan, Ohio and Illinois.
Monroe Bank & Trust president and CEO H Douglas Chaffin said: “We believe our partnership with First Merchants will provide tremendous benefits to our customers, shareholders and communities as we look forward to continuing the legacy of exceptional customer service, local responsiveness and strong community engagement that has defined Monroe Bank & Trust for 160 years.”
The transaction is expected to close in the first quarter of 2019, however, subject to shareholder and regulatory approvals.
The integration of the two banks is expected to be completed during the third quarter of next year.
