MutualFirst Financial Inc. in Muncie, Ind., announced Tuesday that it has agreed to buy the $510 million-asset MFB Corp. of Mishawaka, Ind., for $52.7 million in cash and stock.
Under the deal, which would create the 11th-largest banking company in Indiana, MFB Financial, MFB's bank subsidiary, is to be merged into MutualFirst's Mutual Federal Savings Bank. Including a branch that the $967 million-asset MutualFirst is expected to open this month in Elkhart County, the merged company would have 34 branches.
David W. Heeter, MutualFirst's president and chief executive, said in a press release: "Our merger with MFB will allow us to create scale, giving us the ability to better compete in all of our markets by improving the efficiency of delivering a broad array of financial products and services. This is good for our customers. It is also good for our shareholders as we constantly seek ways to improve performance."
The deal price is equal to about $41 a share. MFB's shares closed at $33.90 Tuesday, up 29% from Monday's close. MutualFirst's shares fell 1.4%, to $13.17. The deal is expected to close in the second quarter.
