Muncie-based First Merchants Bank plans to acquire Indianapolis-based Hoosier Trust Co. for $3.2 million in cash.
The deal, announced Monday, is expected to close in the first quarter, subject to regulatory approvals.
“This strategic acquisition will further strengthen First Merchants’ private wealth practice and continue our efforts to serve as a financial resource for all potential clients in the communities we serve,” First Merchants President and CEO Mike Rechin said in a written statement.
The acquisition will make Hoosier Trust part of a much larger operation.
First Merchants Private Wealth Advisors, which is the bank’s private wealth division, has more than 100 financial advisers, accountants, attorneys and other professionals on staff. The division has more than $4 billion in assets under management.
Established in 2001, Hoosier Trust has four employees and $300 million in assets under management. Its offices are in the Circle Tower building at 55 Monument Circle. All four employees will remain with the company, which will adopt the First Merchants Private Wealth Advisors name.
“This is a natural fit for our company and provides our clients with significantly more opportunities to invest and succeed financially,” Hoosier Trust President and CEO Connie Allman said in a prepared statement.