Scroll To Top

Update Browser: you are currently trying to view the First Merchants site using an outdated browser. In our commitment to your security, and in keeping with industry standards, we no longer support the browser you are using. Learn more.

Mergers & Acquisitions

Return to Mergers & Acquisitions

Deal Overview

First Merchants Corporation
Actual Acquirer:
First Merchants Corporation
Lincoln Bancorp
Deal Type:
Bank & Thrift Company
Agreement Date:
Announcement Date:
Announced Deal Value ($ M):
Completion Date:
Announced Deal Value Per Share ($ )

Consideration Breakout
Cash ($M) 16.8
Common Stock ($M) 67.1
Common Stock Issued 3,040,415

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 79.7 117.4
Price / Tangible Book (%) 108.8 120.5
Price / Earnings (x) 30.6 NM
Price / Deposits (%) 12.18 14.11
Price / Assets (%) 8.85 10.09
Tangible Book Premium/ Deposits (%) NA NA
Deal Terms
Description of Consideration

First Merchants Corp. paid $15.76 in cash or issued 0.7004 share of common stock for each outstanding share of Lincoln Bancorp, subject to no more than 3,576,417 shares of First Merchants' common stock and no more than $16.8 million in cash being paid to Lincoln shareholders. Upon completion, First Merchants Corp. issued approximately 3,040,415 shares of stock and paid approximately $16.8 million in cash.   

Accounting Method Purchase
In-State Transaction? Yes
Merger of Equals? No
Geographic Expansion? In Market
Goodwill Generated ($ 000) 19,813
Estimated Cost Savings (%) 31.80
Estimated Cost Savings ($ 000) 8,000
Est. Restructuring Charges ($ 000) NA
Maximum Termination Fee ($ 000) 3,200
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 0.700400
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Lockup Agreement No
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Core Deposit Intangibles ($ 000) 12,461
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer No NA
Seller Yes Sandler O'Neill & Partners LP
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Bingham Greenebaum Doll LLP
Seller Yes Bose McKinney & Evans LLP