Indiana Members Credit Union (IMCU) has agreed to purchase the assets and liabilities of Indiana-based Commerce Bank from First Light Bancorp.
Commerce Bank has three branches in Evansville and Clarksville, along with a loan production office in New Albany.
The business managed $195.8m in assets at the end of June 2019. Its staff headcount is 31 and client base is 2,000.
As per the agreed terms, First Light stockholders are entitled to get $11.25-$11.40 in cash for each share held.
The deal already received the green light of the two companies’ boards and is currently pending shareholder and regulatory nod.
Upon deal completion in the first quarter of next year, Commerce Bank branches will operate as IMCU offices. Employees of Commerce Bank will be retained.
Commerce Bank president and CEO Luke Yaeger said: “IMCU has the financial strength, systems infrastructure, and expanded products to help us tap into a larger customer base and accelerate growth.”
Post deal closure, First Light and Commerce Bank will distribute their remaining cash to First Light stockholders after settling their remaining obligations.
IMCU president and CEO Ron Collier said: “Our combined size will provide even more opportunities for Commerce Bank commercial borrowers to grow and our robust consumer offerings will assist individuals in these communities to reach their financial goals.”
Earlier this month, Three Rivers Federal Credit Union– another Indiana-based credit union- inked an agreement to acquire Indiana’s West End Bank.