The parent company of Mooresville’s Citizens Bank announced Thursday that it is merging with Carmel-based Merchants Bank of Indiana.
According to a statement from Lynn Gordon, Citba’s CEO, Merchants’ eight shareholders will receive Citba shares that were valued at $98.3 million. Since the annoucement of the deal, the stock has surged from $26.60 per share to $49.50, which boosts the transaction to $183.5 million.
While Citizen’s Bank is the purchasing company, the release stated that all the bank branches will take the Merchants Bank name.
According to a story at IBJ.com, Merchants is larger than Citba, with assets of $1.2 billion. But much of that involves Merchants’ multifamily mortgage and health care facilities financing arm, P/R Mortgage & Investment Corp., which was particularly attractive to Citba.
In a rarity for a banking merger, no job cuts are planned among Citba’s 133 employees or Merchants’ 74 employees. “In fact, we expect this merger to create more job opportunities,” Merchants’ CEO Michael Petrie said in a statement.
Merchants’ shareholders — principally Petrie and Randall D. Rogers — will own 80 percent of Citba when the deal is complete. The men previously worked at the former Merchants National Bank. About a year before Merchants National was acquired in 1991 by Cleveland-based National City Corp. (now owned by PNC) they left and founded their own mortgage unit.
After Petrie and Rogers acquired Richmond-based Greensfork Township State Bank and Carmel-based Symphony, they renamed their company Merchants Bank of Indiana. Merchants adopted the same “M” logo that had been used by the former Merchants National and still has name recognition here.
“The name Merchants is well-respected in central Indiana banking dating back to the days before National City. Yes, the name recognition was a major factor in the decision to rename the company,” Gordon said.