Indiana-based First Merchants Bank has agreed to acquire Ohio-based The Arlington Bank in a deal worth about $75.8m.
The Arlington Bank has three banking centres in the Columbus, Ohio area. The company manages total assets of $305m, total loans of $244m, and total deposits of $260m.
Under the arrangement, The Arlington Bank will merge with and into First Merchants Bank. Arlington Bank shareholders will receive 2.7245 shares of First Merchants common stock for each Arlington Bank common share.
The combined entity will have assets of $7.4bn, and 109 banking offices in 27 Indiana counties and two counties in Ohio and Illinois.
First Merchants president and CEO Michael Rechin said: “The addition of The Arlington Bank supports our growth initiative, making the company more visible and impactful in Columbus, one of the fastest growing cities in the Midwest.
“From The Arlington Bank’s beginning, Jim and Tom, along with their management team and loyal employees, have played a pivotal role in providing real estate financing and retail banking to Columbus consumers, all while maintaining excellent credit quality and producing high levels of performance.”
The deal is expected to be concluded in mid-2017, subject to the shareholders’ and regulatory approvals. The integration process is anticipated to be completed by the end of 2017.