Merchants to Acquire Illinois Bank
(original artist rendering of Merchant's Bancorp HQ) of Carmel)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCarmel-based Merchants Bancorp (Nasdaq: MBIN) has announced plans to acquire FM Bancorp Inc. in Illinois. Financial terms of the deal are not being disclosed, however Merchants expects it to close in the fourth quarter.
The terms of the agreement state once the acquisition is complete, FM Bancorp will merge with and into Merchants. FM Bancorp’s subsidiary, Farmers-Merchants National Bank of Paxton, will merge with and into Joy State Bank in Illinois, which Merchants acquired at the beginning of the year.
"Merchants has had extremely strong financial performance in recent years, and it will benefit our employees and customers to be part of a larger community bank offering a broader selection of products and services," said Tom McCabe, president of FM Bancorp. "We also believe that Merchants is very happy serving relatively smaller communities, and we will remain strongly committed to the consumers and small businesses (including farmers) in our markets."
Merchants says Joy State Bank will have an estimated $159 million in assets and five banking locations in Illinois following the acquisition’s closing. The deal is still subject approval from FM Bancorp’s shareholders as well as regulatory approvals and customary closing conditions.