First Merchants (FRME) to Acquire Shelby County Indiana Assets

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First Merchants Corporation (Nasdaq: FRME) reports an agreement between First Merchants Bank and the FDIC to purchase approximately $117 million of loans and assume $136 million of deposits in Shelby County Indiana. Under the Modified Whole Bank transaction without loss share, the FDIC excluded all construction and development loans, all land loans, all non-performing loans including non-accrual, restructured and 90 days past due credits and all OREO balances. The remaining assets were purchased for a $29 million discount and the deposits were assumed at no premium.

First Merchants also acquired the main office building in Shelbyville, Indiana for $1.4 million. Three of four locations will operate with normal Saturday hours from 9 a.m. to 12 noon. The fourth location will be closed as usual on Saturday. All four locations will be open Monday morning as First Merchants evaluates its market coverage under the FDIC’s purchase option. Asset and liability balances are subject to change based on activities between the bid valuation and the purchase dates. The assets acquired and liabilities assumed are subject to internal adjustment under generally accepted accounting principles.

Sandler O’Neill & Partners, L.P. acted as First Merchant’s financial advisor.

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