Northwest Bancshares, holding company of Northwest Bank, has signed a definitive agreement to acquire MutualFirst Financial for nearly $346m.
The acquisition will see MutualFirst Financial’s subsidiary MutualBank merge with and into Northwest Bank to create a new lender with around $12.7bn in total assets.
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Under the terms of the agreement, MutualFirst shareholders will receive 2.4 shares of Northwest for each MutualFirst share.
One MutualFirst director will also join Northwest’s bank and holding company boards, as part of the deal.
MutualFirst Financial acquisition:
An Indiana-based financial institution, MutualBank offers personal banking, business banking, commercial banking and wealth management services.
The $2.1bn-asset MutualBank operates 39 retail financial centres.
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By GlobalDataThe acquisition will help Norwest in expanding its footprint to Indiana and bolster its capital flow.
Once complete, the combined bank will have presence in four states operating 221 branch locations.
Northwest president and CEO Ronald Seiffert said: “Indiana is an attractive market with a business friendly environment which we have targeted as part of our Mid-Atlantic and Midwest expansion plans.
“MutualFirst represents a unique and sizable opportunity that is highly accretive to both Northwest’s franchise value and shareholder value.
“Maintaining MutualFirst’s executive management team and the presence of similar cultures allows us to consistently serve the customer base with little to no disruption.”
The MutualFirst Financial acquisition and its conversion to Northwest are expected to be completed in the second quarter of 2020.
