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Previous: OLD KENT FINANCIAL CORP /MI/, 8-K, 1999-08-02 |
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NYSE: | OK | |
NASDAQ-NMS: | MBIA | |
FOR RELEASE: | 8:00 A.M. | |
DATE: | JULY 30, 1999 | |
CONTACTS: | OLD KENT FINANCIAL CORPORATION | |
INVESTOR: ALBERT T. POTAS | (616) 771-1931 | |
MEDIA: TANYA BERG | (616) 771-4364 | |
MERCHANTS BANCORP, INC. | ||
CALVIN R. MYERS | (630) 907-9000 |
Merchants Bancorp, Inc., is a bank holding company headquartered in the Chicago suburb of Aurora, Illinois, with assets of $921 million and deposits of $778 million at June 30, 1999. Merchants Bancorp serves Kane County from 12 suburban Chicago locations in Aurora, Geneva, Hinckley, St. Charles and Sugar Grove, and also operates two banking sites in Dekalb and Kendall Counties. Kane County ranks 5th in total population and projected population growth, and 6th in median income, for all Illinois counties.
Mr. Wagner stated, "Healthy, growing markets have always been a key to Old Kent's success and Merchants Bancorp is located in one of the most desirable and fastest growing counties in Illinois. Merchants' strong franchise is a very attractive addition to Old Kent's recent expansion in Chicagoland."
Mr. Myers said, "We view the transaction as being favorable to Merchants' customers and shareholders. Old Kent is big enough to provide a broader array of products and services, yet small enough to stay close to our customers and communities. From a shareholder perspective, Old Kent is focused on delivering superior shareholder value as evidenced by its ten year total annual return to shareholders of 26%."
The merger is subject to the customary approvals by Merchants Bancorp, Inc. shareholders and by regulatory authorities. This transaction is expected to be completed in early 2000. Old Kent's management believes that the acquisition will be accretive to earnings in the year 2000 without factoring in anticipated revenue enhancements.
Old Kent also noted that its recently announced stock repurchase program would be unaffected by this proposed transaction. The program was authorized in June 1999 and allows for the repurchase of up to 3 million shares of Old Kent Common Stock.
On July 9, 1999, Old Kent completed its acquisition of CFSB Bancorp, Inc., a $900 million banking organization headquartered in Lansing, Michigan. Old Kent expects to complete its pending acquisition of Pinnacle Banc Group, Inc., a $1 billion banking organization headquartered in Oakbrook, Illinois, in early September 1999.
Old Kent is a financial services company headquartered in Grand Rapids, Michigan, with a 40 year history of consecutive increases in annual per share earnings and dividends. It operates 246 banking offices in Michigan, Illinois and Indiana as well as 167 mortgage lending sites throughout the United States. At July 14, 1999, Old Kent had total assets of approximately $17 billion.
The following Summary Financial Data is part of the press release.
Old Kent | Merchants | ||
YTD June 30, 1999 | YTD June 30, 1999 |
Earnings Summar | |||
Basic Earnings Per Share | $1.11 | $.93 | |
Diluted Earnings Per Share | $1.10 | $.92 | |
Net Income | $120,644,000 | $4,815,000 | |
Balance Sheet Data (in millions): | |||
Total Loans | $ 9,823 | $631 | |
Total Deposits | 12,363 | 778 | |
Total Assets | 15,929 | 921 | |
Shareholders' Equity | 1,072 | 72 |
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