Merchants Bancorp acquiring deposit-rich bank in Illinois
Merchants Bancorp in Carmel, Ind., has agreed to buy FM Bancorp in Paxton, Ill.
The $3.7 billion-asset Merchants said in a press release Wednesday that it will pay $21.9 million for the $115 million-asset parent of Farmers-Merchants National Bank of Paxton. The deal is expected to close in the fourth quarter.
FM Bancorp has $34 million in loans and $99 million in deposits.
“We are pleased to add to our Illinois banking operations with the acquisition of FM Bancorp,” Michael Petrie, Merchants’ chairman and CEO, said in the release. “We believe that this transaction will be helpful to the employees and customers of Farmers-Merchants.”
Merchants said it expects the transaction to be accretive to earnings per share in its first full year, excluding merger-related expenses.
Boenning & Scattergood and Krieg DeVault advised Merchants. Performance Trust Capital Partners and Howard & Howard advised FM Bancorp.