First Merchants to Acquire OakStar Bancshares for $150M

TL;DR

First Merchants buying OakStar for $150M to grow in KC.

AI Summary

First Merchants Corp. announced on August 26, 2024, that it has entered into a definitive agreement to acquire OakStar Bancshares, Inc. The transaction is valued at approximately $150 million. This acquisition is expected to expand First Merchants' presence in the Kansas City market.

Why It Matters

This acquisition signifies First Merchants' strategic expansion into the Kansas City market, potentially increasing its market share and customer base in a new region.

Risk Assessment

Risk Level: medium — Acquisitions carry inherent risks related to integration, regulatory approval, and potential overpayment, which could impact financial performance.

Key Numbers

• $150 million — Acquisition Value (The total price First Merchants Corp. is paying for OakStar Bancshares, Inc.)

Key Players & Entities

• First Merchants Corp. (company) — Acquiring company
• OakStar Bancshares, Inc. (company) — Acquired company
• $150 million (dollar_amount) — Acquisition valuation
• August 26, 2024 (date) — Date of definitive agreement
• Kansas City (location) — Target market for expansion

FAQ

Key Financial Figures

• $0.125 — ange on which registered Common Stock, $0.125 stated value per share FRME The Nasdaq
• $304 million — in Illinois, representing approximately $304 million in total deposits and $12 million in to
• $12 million — tely $304 million in total deposits and $12 million in total loans as of June 30, 2024, to
• $23 million — is expected to result in approximately $23 million of gain and should allow the Company to

Filing Documents

• frme-20240826.htm (8-K) — 29KB
• pressrelease-michiganbanki.htm (EX-99.1) — 15KB
• picture1a.jpg (GRAPHIC) — 37KB
• 0000712534-24-000292.txt ( ) — 266KB
• frme-20240826.xsd (EX-101.SCH) — 3KB
• frme-20240826_def.xml (EX-101.DEF) — 16KB
• frme-20240826_lab.xml (EX-101.LAB) — 28KB
• frme-20240826_pre.xml (EX-101.PRE) — 16KB
• frme-20240826_htm.xml (XML) — 4KB

01 OTHER EVENTS

ITEM 8.01 OTHER EVENTS First Merchants Bank, the wholly-owned banking subsidiary of First Merchants Corporation (the "Company"), has entered into a Branch Purchase and Assumption Agreement with Old Second National Bank, a national banking association headquartered in Aurora, Illinois, pursuant to which First Merchants Bank will sell five branches located in Illinois, representing approximately $304 million in total deposits and $12 million in total loans as of June 30, 2024, to Old Second National Bank. The sale is expected to result in approximately $23 million of gain and should allow the Company to capitalize on the valuation premium and redeploy the capital in balance sheet restructuring efforts driving shareholder value. Subject to the receipt of regulatory approvals from the required federal and state banking agencies, the parties expect the sale to be consummated in the fourth quarter of 2024. On August 27, 2024, the parties issued a joint press release announcing the execution of the Branch Purchase and Assumption Agreement, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Report contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can often, but not always, be identified by the use of words like "believe", "continue", "pattern", "estimate", "project", "intend", "anticipate", "expect", and similar expressions or future or conditional verbs such as "will", "would", "should", "could", "might", "can", "may", or similar expressions. These forward-looking statements include, but are not limited to, statements regarding the Company's goals, intentions and expectations related to the divestiture.

01 FINANCIAL STATEMENTS AND EXHIBITS

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (a) Not applicable. (b) Not applicable. (c) Not applicable. (d) Exhibits. Exhibit 99.1 Joint Press Release, dated August 27, 2024 Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. First Merchants Corporation (Registrant) By: /s/ Michele M. Kawiecki Michele M. Kawiecki Executive Vice President, Chief Financial Officer Dated: August 27, 2024

View Full Filing

View this 8-K filing on SEC EDGAR