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First Merchants Corporation Announces the Completion of Merger with Lincoln Bancorp

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^{Published in Business and Finance on Friday, January 2nd 2009 at 12:50 GMT, Last Modified on 2009-01-02 12:51:42 by Market Wire}  

MUNCIE, Ind.--([ BUSINESS WIRE ])--First Merchants Corporation (NASDAQ: FRME) successfully completed its previously announced merger with Lincoln Bancorp (NASDAQ: LNCB), of Plainfield, Indiana on Wednesday, December 31, 2008.

With over $830 million in assets, upon integration, Lincoln Bank will combine with First Merchants Bank of Central Indiana in the 2^nd quarter of 2009. After the combination, First Merchants will serve the greater Indianapolis area with 24 banking centers in Hamilton, Johnson, Hendricks, Madison, Brown, and Morgan Counties. In addition, Lincoln serves customers through three banking center locations in Clinton and Montgomery Counties.

Mike Stewart, First Merchants Corporation's Chief Banking Officer added, "We are pleased that this merger received overwhelming approval at the Lincoln Bancorp special shareholder meeting. Convenience is an intended benefit, and Lincoln's customers will now have access to expanded product and service options including trust services, wealth management and insurance. The capital resources, lending capacity and related financial services First Merchants provides will enable us to focus on core growth in the Indianapolis and surrounding community markets." Stewart will become President and CEO of the newly combined bank.

Founded in 1884, Lincoln Bancorp built a long history of deep-rooted commitment to community banking by providing personalized financial services solutions to consumer and business customers. Jerry Engle, President and CEO of Lincoln Bank stated, "The combined strength of Lincoln Bank and First Merchants provides us with the opportunity to offer enhanced products and services. Our customers will benefit from the First Merchants network of 82 banking centers and ATM network throughout Indiana and Ohio."

Michael C. Rechin, President and Chief Executive Officer of First Merchants Corporation commented, "The solid community banking reputation and commitment that Lincoln Bank has established over their long history, mirrors the First Merchants culture of partnership with both our customers and communities. Our partnership is accretive to the current Lincoln Bank model, providing the strength of scalable solutions and powerful tools for personal and business growth in a larger footprint. This acquisition aligns with our strategic vision to provide superior banking services that are decisioned and delivered locally. I'm excited about the benefit this brings to all of our customers, shareholders and employees."

As part of the $78 million merger, shareholders of Lincoln Bancorp will receive approximately 3,040,460 shares of First Merchants Corporation common stock and approximately $16.8 million in cash in exchange for their Lincoln Bancorp common shares.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. Subsidiaries of the Corporation include First Merchants Bank, N.A., First Merchants Bank of Central Indiana, N.A., Lafayette Bank & Trust Company, N.A., Commerce National Bank, Lincoln Bank and First Merchants Trust Company, N.A. The Corporation also operates First Merchants Insurance Services, a full-service property casualty, personal lines, and healthcare insurance agency.

First Merchants Corporation's common stock is traded over-the-counter on the NASDAQ National Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company's Internet web page ([ http://www.firstmerchants.com ]).