First Merchants Corporation and Community Bancshares, Inc. Announce the Signing of a Definitive Merger Agreement

First Merchants Corporation and Community Bancshares, Inc. Announce the Signing of a Definitive Merger Agreement

  • Posted: 07/22/2014
  • Castle Creek

MUNCIE, Ind. & NOBLESVILLE, Ind.–(BUSINESS WIRE)–First Merchants Corporation (FRME) and Community Bancshares, Inc. today announced they have executed a definitive agreement whereby Community Bancshares will merge with and into First Merchants, and its wholly-owned bank subsidiary, Community Bank, will merge with and into First Merchants Bank, N.A.

The merger agreement provides that shareholders of Community Bancshares will have the right to exchange each Community Bancshares common share held for either or a combination of (i) 4.0926 shares of First Merchants’ common stock, or (ii) $85.94 in cash. In the event that the total amount of cash elections exceeds $15 million, proration will occur to limit the cash paid to $15 million. Based on the closing price of First Merchants’ common stock on July 21, 2014 of $20.38, the transaction value is approximately $46.3 million.

The transaction is expected to be completed in the first quarter of 2015, subject to the approval of Community Bancshares shareholders, regulatory approvals, and other customary closing conditions. The combined financial institutions, which will do business as First Merchants Bank, expect to complete the integration during the second quarter of 2015.

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