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Mergers & Acquisitions

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Deal Overview

Buyer:
First Merchants Corporation
Actual Acquirer:
First Merchants Corporation
Target:
Independent Alliance Banks, Inc.
Deal Type:
Bank & Thrift Company
Agreement Date:
2/17/2017
Announcement Date:
2/17/2017
Announced Deal Value ($ M):
249.65
Status:
Completed
Completion Date:
7/14/2017
Announced Deal Value Per Share ($ )
69.59

Consideration Breakout
Common Stock ($M) 239.4
Common Stock Issued 5,968,170

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 232.4 214.8
Price / Tangible Book (%) 265.1 244.4
Price / Earnings (x) 27.8 27.9
Price / Deposits (%) 32.99 31.54
Price / Assets (%) 26.11 25.01
Tangible Book Premium/ Deposits (%) 22.56 20.18
Deal Terms
Description of Consideration

First Merchants Corp. issued 1.6530 shares of its common stock to acquire 87.9% stake in Independent Alliance Banks Inc.

Accounting Method Acquisition
In-State Transaction? Yes
Merger of Equals? No
Geographic Expansion? Market Expansion
Goodwill Generated ($ 000) 157,401
Estimated Cost Savings (%) 38.00
Estimated Cost Savings ($ 000) 10,900
Est. Restructuring Charges ($ 000) 7,200
Maximum Termination Fee ($ 000) 5,000
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 1.653000
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) 13,638
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes SunTrust Robinson Humphrey Inc
Seller Yes ProBank Austin
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Bingham Greenebaum Doll LLP
Seller Yes Shumaker Loop & Kendrick LLP

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