NBD Bancorp has agreed to buy Summcorp of Fort Wayne, doubling its Indiana presence to 99 offices and $4.7 billion of assets.

The deal, announced Friday, is a continuation of NBD's push into Northeaster Indiana. The Detroit-based company owns Midwest Commerce Banking Co., Elkhart, and has agreed to buy Gainer Corp., Merrilville.

Upon completion of the deals, NBD will control the fourth-largest banking franchise in the Indiana. The largest bank company in the state, Merchants National Corp., Indianapolis, recently agreed to merge with National City Corp., Cleveland.

Swap Ratio Is Set

NBD will swap nine of its common shares for every 10 Summcorp shares, in a deal valued at roughly $330 million. The company expects to close the transaction during the second quarter of 1992.

Summcorp is healthy, posting annualized returns of 0.95% on its $2.5 billion of assets and 13.3% on equity during 1991's third quarter.

Summcorp's stock price, which rose $3 Friday, when the deal was announced, was up another $4.50 Monday afternoon, to $35. NBD had risen Monday afternoon by 12.5 cents, reaching $41.75.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.