MutualFirst Financial (MFSF) and Universal Bancorp said late Wednesday they signed an agreement pursuant to which Universal will be merged into MutualFirst, with MutualFirst being the surviving entity. The cash and stock transaction is valued at about $65.6 million.
After the close, BloomBank, a wholly owned subsidiary of Universal, will merge into MutualFirst’s wholly owned bank subsidiary, MutualBank, according to a statement. The merger is expected to be accretive to MutualFirst’s 2018 EPS and with cost savings fully implemented in 2019 the accretion is projected to be about 13%.
The company said the merger will expand MutualFirst’s presence into Central and Southern Indiana. At closing, the combined company is expected to have $2 billion in total assets. This transaction will increase MutualFirst’s branch network to a total of 40 branches.
Meanwhile, MutualFirst will acquire 100% of the outstanding shares of Universal in exchange for a mixture of cash and common shares of MutualFirst. Under the terms, shareholders of Universal will be entitled to receive 15.6 shares of MutualFirst common stock plus $250.00 in cash for each common share of Universal.