MUNCIE — MutualFirst Financial Inc., the parent company of MutualBank, recently announced its merger with Pennsylvania based Northwest Bancshares, Inc.
Both organizations announced the merger through a press release on Oct. 29.
According to the news release from MutualFirst Financial, NorthWest will acquire the Muncie-based holding company in an all-stock transaction currently valued at $346 million as of Oct 23.
The acquisition provides Northwest access to an attractive new region of prospective customers. Northwest gains an additional $2.1 billion in total assets, $1.6 billion in total deposits, $1.5 billion in loans and 39 banking locations according to financial information as of Sept. 30, said the news release.
President and CEO of MutualFirst David W. Heeter will assume the role of Regional CEO and market leader for Northwest’s new Indiana franchise following the merger.
“During our proud 130-year history, MutualBank has been committed to serving our clients and local communities,” Heeter said. “Through a consistent level of superior quality service, our dedicated staff has grown a loyal commercial and retail customer base.”
“We are very excited to join the Northwest team,” said Heeter.
Heeter will report directly to Ronald J. Seiffert, President and Chief Executive Officer of Northwest.
“Indiana is an attractive market with a business-friendly environment which we have targeted as part of our Mid-Atlantic and Midwest expansion plans,” said Seiffert. “MutualFirst represents a unique and sizable opportunity that is highly accretive to both Northwest’s franchise value and shareholder value. “
“Maintaining MutualFirst’s executive management team and the presence of similar cultures allows us to consistently serve the customer base with little to no disruption,” Seiffert said.
“We believe MutualBank’s customers and employees will embrace Northwest’s culture and values and appreciate the additional products and services of a larger community bank which should also create additional growth potential,” said Sieffert.
Under the terms of the merger agreement, shareholders of MutualFirst will be entitled to receive 2.4 shares of Northwest common stock for each share of MutualFirst, said the news release.
Both organizations expect the merger to be finalized in the second quarter of 2020 through customary closing conditions, including approvals from regulatory organizations and MutualFirst shareholders.
Once completed, the combination of two banking companies will create a bank with approximately $12.7 billion in total assets and $10.3 billion in deposits. The new bank will provide services through 221 branch locations in four states, said the news release.
Locally, MutualFirst currently operates MutualBank branches in North Webster, Syracuse and Warsaw.