First Merchants Corp. to acquire CNBC Bancorp for 2.7 times revenue

Weekly Corporate Growth Report, Sep 2, 2002

The Deal: CNBC Bancorp has agreed to merge with First Merchants Corporation in a stock and cash transaction valued at $58 million. First Merchants will exchange either 1.01 of its shares or $29.57 in cash for each share of CNBC. No more than $24.6 million in cash may be paid in the merger, and there may be allocations of stock to certain shareholders if this limit is exceeded. The deal still requires approval from CNBC shareholders and regulatory agencies. The merger transaction is expected to close in the first quarter of 2003.

Discussion: CNBC Bancorp is the bank holding company for Commerce National Bank, a national bank established in 1991. The bank participates in many government-sponsored lending programs, including the Small Business Administration (SBA) and Columbus Countywide Development Corporation. The bank also offers business and consumer credit cards and business credit card processing services.

First Merchants is the holding company for Decatur Bank and Trust, First Merchants Bank, First National Bank, First United Bank, Madison Community Bank, The Randolph County Bank, and The Union County National Bank of Liberty. The banks serve eastern Indiana and western Ohio.

First Merchants is growing by acquisitions. The bank is also buying Lafayette Bancorp in Indiana.