Carmel, Ind.-based Merchants Bancorp will acquire FM Bancorp and its subsidiary, Farmers-Merchants National Bank of Paxton, Ill., later this year.
As of March 31, FM Bancorp had total assets of $114.6 million, which included gross loans of $33.6 million and deposits of $99.3 million. For the last twelve months ended March 31, 2018, FM Bancorp’s return on average assets and return on average equity were 0.87% and 6.85%, respectively.
Farmers-Merchants will be merged into the Merchants Bancorp subsidiary, Joy State Bank, Joy, Ill., after the deal closes in the fourth quarter. Post-merger Joy State Bank will have approximately $159 million in assets and five banking locations throughout Illinois.
“We are pleased to add to our Illinois banking operations with the acquisition of FM Bancorp,” said Michael F. Petrie, chairman and CEO of Merchants. “We believe that [FM Bancorp Chairman and President] Tom McCabe and his colleagues have done a great job in building a solid community bank, and we believe that this transaction will be helpful to the employees and customers of Farmers-Merchants.”
Boenning & Scattergood, Inc. is serving as financial advisor to Merchants while Krieg DeVault LLP is serving as legal counsel on the transaction. Performance Trust Capital Partners, LLC and Howard & Howard Attorneys PLLC are serving as financial and legal advisors to FM Bancorp, respectively.
The $3.7 billion Merchants Bancorp also operates Merchants Bank of Indiana, Carmel.