First Merchants to buy Arlington Bank in Ohio
First Merchants in Muncie, Ind., has agreed to buy Arlington Bank in Upper Arlington, Ohio.
The $7 billion-asset First Merchants said in a press release Wednesday that it will pay $75.8 million in stock for the $305 million-asset Arlington Bank. The deal, which is expected to close in mid-2017, values Arlington Bank at 215% of its tangible book value.
Arlington Bank has three branches around Columbus, Ohio, along with $244 million in loans and $260 million in deposits.
First Merchants said it expects the deal to be accretive to its earnings in the first full year with a tangible book value earnback of three years. The company said it expects to cut about 35% of Arlington Bank’s nointerest expense.
Sandler O'Neill and Bingham Greenebaum Doll advised First Merchants. Boenning & Scattergood and Vorys, Sater, Seymour & Pease advised Arlington Bank.