First Merchants in Muncie, Ind., has agreed to buy Independent Alliance Banks in Fort Wayne, Ind.

The $7.2 billion-asset First Merchants said in a press release Friday that it will pay $251.3 million in cash and stock for the $1.1 billion-asset Independent Alliance. The deal, which is expected to close in the third quarter, values Independent Alliance at 252% of its tangible book value.

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