Warren, Pennsylvania-based Northwest Bancshares and Muncie-based MutualFirst Financial announced the signing of a definitive merger agreement Wednesday, according to a Mutual Bank press release.
MutualFirst, a holding company, is the parent company of MutualBank. Northwest will acquire MutualFirst in an all-stock transaction valued at approximately $346 million or $39.89 per share, the press release states.
Based on September's financial information, the acquisition will provide Northwest an additional $2.1 billion in total assets, $1.6 billion in total deposits, $1.5 billion in loans and 39 banking locations, the release states.
Upon completion of the transaction, it states, the two banking companies will create a bank with approximately $12.7 billion in total assets, $10.3 billion in deposits and provide banking services through 221 bank locations in four states.
David Heeter, president and CEO of Mutual First, will be named regional CEO and market leader for Northwest's Indiana franchise. Heeter also serves as a member on the Board of Muncie Community Schools.
"We are very excited about joining the Northwest team," he said in the press release. "Northwest has demonstrated a similar commitment to its clients, employees and the communities it serves, shares our core values and has an outstanding record of enhancing shareholder value.”
Heeter will be reporting directly to Ronald Seiffert, president and CEO of Northwest.
“Indiana is an attractive market with a business friendly environment which we have targeted as part of our Mid-Atlantic and Midwest expansion plans," Seiffert said. "MutualFirst represents a unique and sizable opportunity that is highly accretive to both Northwest’s franchise value and shareholder value."
As part of the merger, one MutualFirst director will be added to Northwest’s bank and holding company boards, the release states.
The merger is expected to be consummated and converted to Northwest in the second quarter of 2020, it states, after satisfaction of customary closing conditions, including regulatory approvals and the approval of the shareholders of MutualFirst.
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