IBJNews

Merchants, Citizens Bank to merge

Back to TopCommentsE-mailPrintBookmark and Share

Carmel-based Merchants Bank of Indiana is merging into Mooresville-based Citba Financial Corp., the parent of the $375 million-in-assets Citizens Bank—a deal that sent Citba shares soaring 87 percent Thursday morning.

Merchants' eight shareholders will receive Citba shares that were valued at $98.3 million before the announcement of the deal caused the stock to surge from $26.60 to $49.50. The increase—fueled by optimism that the deal will boost profits—swelled the value of the transaction to $183.5 million.

Although Citba will be the surviving corporation, it will take on the name Merchants Bancorp, and its branches will take on the Merchants Bank moniker.

Merchants is larger than Citba, with assets of $1.2 billion. But much of that involves Merchants’ multifamily mortgage and health care facilities financing arm, P/R Mortgage & Investment Corp., which was particularly attractive to Citba.

“Margin compression is really impacting all traditional community banks,” said Lynn Gordon, Citba's CEO.

“All community banks are looking for non-interest income revenue streams. The P/R Mortgage and Investment subsidiary of Merchants Bank historically has been a strong source of non-interest income. We anticipate that it will continue to be so for the combined companies,” Gordon told IBJ.

P/RMIC has “become nationally recognized in that area. They’re one of the larger lenders of that type in the country,” said Mike Renninger, principal of local investment banking firm Renninger & Associates LLC, which represented Merchants.

“I think they have an opportunity to be a powerhouse in central Indiana,” Renninger said of the combined company.

In a rarity for a banking merger, no job cuts are planned among Citba’s 133 employees or Merchants’ 74 employees. “In fact, we expect this merger to create more job opportunities,” Merchants’ CEO Michael Petrie said in a statement.

Merchants' shareholders—principally Petrie and Randall D. Rogers—will own 80 percent of Citba when the deal is complete. The men previously worked at the former Merchants National Bank. About a year before Merchants National was acquired in 1991 by Cleveland-based National City Corp. (now owned by PNC) they left and founded their own mortgage unit.

After Petrie and Rogers acquired Richmond-based Greensfork Township State Bank and Carmel-based Symphony, they renamed their company Merchants Bank of Indiana. Merchants adopted the same "M" logo that had been used by the former Merchants National and still has name recognition here.

“The name Merchants is well-respected in central Indiana banking dating back to the days before National City. Yes, the name recognition was a major factor in the decision to rename the company,” Gordon said.

For now at least, don’t expect to see the return of the green frog mascot of the former Merchants National.

ADVERTISEMENT

  • Good Luck
    This proves that financial services and banking can be done with integrity and innovation in the Indianapolis market. Good Luck in the future.
  • Way to go!
    This proves that financial services and banking can be done with integrity and innovation in Indianapolis. Best of Luck in the future.
  • Doing Well
    Glad to see Mike and Randy doing well. A couple of good guys.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I still don't understand how the FBI had any right whatsoever to investigate this elderly collector. Before the Antiquities Act it was completely legal to buy, trade or collect Native American artifacts. I used to see arrow heads, axes, bowls, corn grinders at antique shops and flea markets for sale and I bought them myself. But that was in the late 60's and early 70's. And I now know that people used to steal items from sites and sell them. I understand that is illegal. But we used to find arrow heads and even a corn grinder in our back yard when I was a child. And I still have those items today in my small collection.

  2. I lived in California and they had many of the things noted in the proposed suggestions from the "Blue Ribbon Panel". California is near financial collapse now. Let's not turn the great state of Indiana into a third world dump like California.

  3. The temporary closure of BR Avenue will get a lot of attention. But, one thing reported by the IndyStar really stands out to me, and is extraordinarily depressing: “Police also have agreed to crack down on noise violations, traffic violations and public intoxication.” In other words, the police have generously agreed to do their jobs (temporarily, at least), instead of just standing around waiting for someone to call 911. When is someone in this department going to get off their fat arse (looking at you, Chief), get their minds out of 1975-era policing and into 2014, and have his department engage in pro-active work instead of sitting around waiting for someone to be shot? Why in the hell does it take 7 people getting shot in one night in one of the city’s biggest tourist destinations, to convince the police (reluctantly, it would appear) that they actually need to do their f’n jobs? When is the Chief going to realize that there’s a huge, direct, proven correlation between enforcing the law (yes, all laws, especially those affecting quality of life) and preventing larger crimes from occurring? Is it racial BS? Is that what this extraordinary reluctance is all about? Is the department and the city terrified that if they do their jobs, they might offend someone? Whom, exactly? Will the victims of violence, murder, assault, rape, robbery, and theft be offended? Will the citizens who have to tolerate their deteriorating quality of life be offended? Will the businesses who see their customers flee be offended? Or, is it simple ignorance (maybe the Chief hasn’t heard about NYC’s success in fighting crime - it’s only the biggest g*&#am city in the country, after all)? Either way, Chief, if you don’t want to do your job, then step down. Let someone who actually wants the job take it.

  4. I thought Indiana had all the funding it needed for everything. That's why the state lottery and casino gambling were allowed, as the new tax revenue would take care of everything the state wanted to do.The recommendations sound like they came from California. Better think about that. What is the financial condition of that state?

  5. I was a fan of WIBC in the morning, Steve was the only WIBC host that I listened too, he gave the news with so much flare that I enjoyed listening to him on my way to work. Katz is no Steve. Sadly, I will not be listening to WIBC anymore.

ADVERTISEMENT