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Mergers & Acquisitions

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Deal Overview

Buyer:
First Merchants Corporation
Actual Acquirer:
First Merchants Bank
Target:
Arlington Bank
Deal Type:
Bank & Thrift Company
Agreement Date:
1/25/2017
Announcement Date:
1/25/2017
Announced Deal Value ($ M):
75.80
Status:
Completed
Completion Date:
5/19/2017
Announced Deal Value Per Share ($ )
99.34

Consideration Breakout
Common Stock ($M) 83.0
Common Stock Issued 2,074,783

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 226.2 243.4
Price / Tangible Book (%) 226.2 243.4
Price / Earnings (x) 18.3 21.4
Price / Deposits (%) 28.64 33.09
Price / Assets (%) 24.53 28.47
Tangible Book Premium/ Deposits (%) 20.17 24.87
Deal Terms
Description of Consideration

First Merchants Corp. exchanged 2.7245 shares of its common stock for each outstanding share of Arlington Bank.

Accounting Method Acquisition
In-State Transaction? No
Merger of Equals? No
Geographic Expansion? In Market
Goodwill Generated ($ 000) 47,719
Estimated Cost Savings (%) 35.00
Estimated Cost Savings ($ 000) 3,500
Est. Restructuring Charges ($ 000) 6,800
Maximum Termination Fee ($ 000) 3,000
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 2.724500
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) 4,526
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes Sandler O'Neill & Partners LP
Seller Yes Boenning & Scattergood Inc.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Bingham Greenebaum Doll LLP
Seller Yes Vorys Sater Seymour and Pease

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