First Merchants Corporation (NASDAQ: FRME) successfully completed its
previously announced merger with Ameriana Bancorp (NASDAQ: ASBI) of New
Castle, Indiana on December 31, 2015. In connection with the merger,
Ameriana Bank has also merged with and into First Merchants Bank, N.A.
The combined First Merchants Bank now has 117 banking centers in
Illinois, Indiana and Ohio and approximately $6.7 billion in assets,
$4.6 billion in loans, $5.2 billion in deposits, and total shareholders’
equity of $809 million. The full integration of Ameriana Bank under the
First Merchants brand is expected to be completed during the 1st quarter
of 2016.
As part of the $70.4 million merger, shareholders of Ameriana Bancorp
will receive .9037 shares of First Merchants Corporation common stock
for each share of Ameriana Bancorp common stock held. The former
shareholders of Ameriana Bancorp will receive information shortly on how
to complete the exchange of their Ameriana Bancorp stock.
Michael C. Rechin, First Merchants Corporation's Chief Executive Officer
stated "We are pleased that this merger received overwhelming approval
by the Ameriana Bancorp shareholders. Ameriana’s clients will now have
access to expanded product and service options along with the additional
capital resources and lending capacity that First Merchants provides.
The merger will add five locations to our thirteen banking centers in
Hamilton County, the fastest growing Indiana market. We are also excited
about the addition of four new communities that we don’t currently
serve; New Castle, Knightstown, New Palestine and Greenfield, all
suburbs of Indianapolis. With the legal aspects of the merger behind us,
we can exclusively focus our attention on taking care of our clients."
Ameriana Bank has a deep-rooted commitment to community banking by
providing personalized financial services solutions to consumer and
business customers. Jerome J. Gassen, Ameriana Bank’s Chief Executive
Officer added "We are excited about becoming part of the First Merchants
family, and believe this partnership benefits our clients, shareholders
and communities. Our clients will now have access to a broader network
and expanded products and services, while still enjoying community
banking service delivered by people they know and trust. For several
years now, our executive management team has been driven to be the bank
of choice in our marketplace. Our bankers look forward to taking
advantage of new product capabilities and continuing to build momentum
with our clients as First Merchants. The core values of both companies
share a commitment to local decision making, personal service, long-term
relationships and community involvement." Mr. Gassen, along with Deborah
Robinson, Ameriana Bank’s Chief Banking Officer, will continue to manage
the legacy Ameriana markets and lead the opening of First Merchants
first digital concept banking center in Broad Ripple.
About First Merchants Corporation
First Merchants Corporation is a financial holding company headquartered
in Muncie, Indiana. The Corporation is comprised of First Merchants
Bank, N.A., which also operates as Lafayette Bank & Trust and First
Merchants Trust Company as divisions of First Merchants Bank, N.A.
First Merchants Corporation’s common stock is traded on the NASDAQ
Global Select Market System under the symbol FRME. Quotations are
carried in daily newspapers and can be found on the company’s Internet
web page (http://www.firstmerchants.com).
Forward-Looking Statements
This press release contains forward-looking statements made pursuant to
the safe-harbor provisions of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements can often, but not always,
be identified by the use of words like “believe”, “continue”, “pattern”,
“estimate”, “project”, “intend”, “anticipate”, “expect” and similar
expressions or future or conditional verbs such as “will”, would”,
“should”, “could”, “might”, “can”, “may”, or similar expressions. These
forward-looking statements include, but are not limited to, statements
relating to the expected timing and benefits of the merger (the
“Merger”) between First Merchants Corporation (“First Merchants”) and
Ameriana Bancorp, including future financial and operating results, cost
savings, enhanced revenues, and accretion/dilution to reported earnings
that may be realized from the Merger, as well as other statements of
expectations regarding the Merger, and other statements of First
Merchants’ goals, intentions and expectations; statements regarding the
First Merchants’ business plan and growth strategies; statements
regarding the asset quality of First Merchants’ loan and investment
portfolios; and estimates of First Merchants’ risks and future costs and
benefits, whether with respect to the Merger or otherwise. These
forward-looking statements are subject to significant risks, assumptions
and uncertainties that may cause results to differ materially from those
set forth in forward-looking statements, including, among other things:
the risk that the businesses of the First Merchants and Ameriana Bancorp
will not be integrated successfully or such integration may be more
difficult, time-consuming or costly than expected; expected revenue
synergies and cost savings from the Merger may not be fully realized or
realized within the expected time frame; revenues following the Merger
may be lower than expected; customer and employee relationships and
business operations may be disrupted by the Merger; possible changes in
economic and business conditions; the existence or exacerbation of
general geopolitical instability and uncertainty; the ability of First
Merchants to integrate recent acquisitions and attract new customers;
possible changes in monetary and fiscal policies, and laws and
regulations; the effects of easing restrictions on participants in the
financial services industry; the cost and other effects of legal and
administrative cases; possible changes in the credit worthiness of
customers and the possible impairment of collectability of loans;
fluctuations in market rates of interest; competitive factors in the
banking industry; changes in the banking legislation or regulatory
requirements of federal and state agencies applicable to bank holding
companies and banks like First Merchants’ affiliate bank; continued
availability of earnings and excess capital sufficient for the lawful
and prudent declaration of dividends; changes in market, economic,
operational, liquidity, credit and interest rate risks associated with
the First Merchants’ business; and other risks and factors identified in
each of First Merchants’ filings with the Securities and Exchange
Commission. First Merchants does not undertake any obligation to update
any forward-looking statement, whether written or oral, relating to the
matters discussed in this press release. In addition, First Merchants’
and Ameriana Bancorp past results of operations do not necessarily
indicate the anticipated future results of First Merchants following the
Merger.
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