According to the complaint, First Merchants “engaged in unlawful redlining in Indianapolis by intentionally avoiding predominantly African-American neighborhoods because of the race of the people living in those neighborhoods.”
Investors have turned pessimistic about everything from the inevitability of a U.S. recession to growing international trade disruptions and higher loan defaults.
A former assistant manager has been sentenced after pleading guilty to stealing hundreds of thousands of dollars from depositors. She said she stole the money after she became addicted to playing slot machines.
The merged companies make up the second-largest financial holding corporation headquartered in Indiana, behind Evansville-based Old National Bank Bancorp.
The Muncie-based bank, which agreed to purchase New Castle-based Ameriana in June, had faced two shareholder lawsuits opposing the deal. Those lawsuits have been dropped.
Now we know exactly how much of a fortune—or not—that larger, Indiana-based banks are generating from those ill-timed debit and ATM transactions.
Ameriana shareholders said in the complaint that the $69 million offer is “inadequate” and that the deal deters competing bids.
As of June 30, First Merchants Bank had amassed $958 million in deposits at 27 Indianapolis-area offices, placing it 10th, Federal Deposit Insurance Corp. data shows.
The deal gives First Merchants a stronger foothold in affluent Hamilton County, and a total of 107 locations in three states.
Assets for Indiana banks have risen back to levels seen in 2008, and financial institutions are lending again. But smaller, community-based banks still face an array of challenges that could lead to more consolidation.
A lawsuit seeking class-action status alleges that the Muncie-based bank manipulated the timing of customers’ transactions to cause their checking accounts to bounce more frequently, generating millions of dollars in overdraft fees.
First Merchants Corp. CEO Michael Rechin thinks a wave of bank mergers is coming—driven by financial institutions’ quest to increase profits in an environment where super-low interest rates continue to squeeze margins.