First Merchants Corporation signs $323m merger deal with Level One Bancorp

First Merchants Corporation, a financial services holding company in Central Indiana, has signed a merger deal worth around $323.5 million with Michigan-based bank holding company Level One Bancorp.

Post-merger, Level One Bank, the banking subsidiary of Level One Bancorp, will merge with and into First Merchants Bank, the banking subsidiary of First Merchants Corporation.

Level One Bank is a community bank based in Farmington Hills, Michigan. Founded in 2007, Level One Bank has 16 banking center locations across the southeastern Michigan area.

It has $2.5 billion of assets, $1.7 billion of loans, and $2.1 billion in total deposits.

The combination of First Merchants Bank and Level One Bank will have nearly $17.6 billion of assets, while operating 122 banking offices across Indiana, Michigan, Illinois, and Ohio.

Mark Hardwick — CEO of First Merchants Corporation said: “Like First Merchants, Level One Bank has a strong customer-focused history and a deep-rooted commitment to community banking.  We are excited they have chosen to become the newest member of the First Merchants family.”

As per the terms of the deal, Level One Bancorp’s shareholders will exchange each of their shares for 0.7167 shares of First Merchants Corporation’s shares plus $10.17 in cash.

Patrick Fehring — Chairman and CEO of Level One Bancorp said: “We believe our partnership with First Merchants will provide tremendous benefits to our customers, shareholders and communities as we look forward to continuing the legacy of exceptional customer service, local responsiveness and strong community engagement that has defined Level One Bank since it was founded in 2007.”

The deal, which is subject to Level One Bancorp’s shareholders’ approval, regulatory approvals, and other customary conditions, is likely to close in the first half of the upcoming year.