First Merchants Corporation · NASDAQ:FRME
First Merchants — Merger or Acquisition (November 2021)
11 slides from First Merchants's merger presentation, Nov 4, 2021
Slide 1: Merger with Level One Bancorp, Inc.
Merger with Level One Bancorp, Inc. November 4, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue
Slide 3: A Leading Midwest Banking Franchise
A Leading Midwest Banking Franchise Partnership Enhances Scale and Expands Michigan Metro Footprint Grand Rapids Pro Forma Financial Highlights1 Ann Arbor Detroit Detroit Ticker: FRME Ann Arbor Michigan Monroe Headquarters: Muncie, IN Munster F o r t W a yn e Ohio Founded: 1893 Illinois Monroe Banki
Slide 4: Transaction Highlights
Transaction Highlights ▪ Further establishes FRME as a leading Midwest banking franchise by adding a proven growth-oriented bank in a substantial metro market ▪ Enhances scale in Michigan and creates southeast Michigan’s premier community bank – Pro forma entity will have the #1 deposit market share
Slide 5: Transaction Summary
Transaction Summary ▪ First Merchants Corporation (“FRME”) Buyer ▪ Muncie, Indiana ▪ Established 1893 ▪ Level One Bancorp, Inc. (“LEVL”) Seller ▪ Farmington Hills, Michigan ▪ Established 2007 ▪ 0.7167 shares of FRME common stock and $10.17 per share in cash for each share of LEVL Consideration commo
Slide 6: Overview of Level One Bancorp, Inc.
Overview of Level One Bancorp, Inc. Best in Class Metro-Focused Michigan Banking Franchise Company Highlights Geographic Footprint ▪ Largest1 independent franchise in southeast Michigan2 M I C H I G AN 75 ▪ Level One serves the Detroit MSA with a population Farmington 75 of over 4.3 million that’s b
Slide 7: Enhances Scale in Michigan
Enhances Scale in Michigan More Than Doubles FRME’s Presence in Highly Attractive Southeast Michigan Markets Attractive and Diversified Metro Markets ▪ 17 Fortune 1000 companies are headquartered within the Detroit MSA – Nearly 60% of all Fortune 500 companies have at least one business location in
Slide 8: Pro Forma Loans & Deposits
Pro Forma Loans & Deposits LEVL’s Commercial-Focused Loan Portfolio and Low-Cost Deposit Base Complements Our Franchise FRME LEVL Pro Forma Construction Construction Construction Consumer 5.8% 5.5% Consumer 5.7% & Other & Other 12.8% 10.8% Residential Home Residential Mortgage Equity Residential Mor
Slide 9: Summary Financial Impact & Assumptions
Summary Financial Impact & Assumptions ▪ 10.4% EPS accretion for 2023 (with fully phased cost savings) ▪ 4.3% TBV dilution at closing, inclusive of all transaction costs, with an earnback of 2.9 years Financial using the crossover method1 Impact ▪ ~8.4% tangible common equity / tangible assets estim
Slide 10: History of Organic and Whole Bank Acquisition Growth
History of Organic and Whole Bank Acquisition Growth Total Assets ($B) Growth Through Acquisition $17.6 ✓ Experienced Acquirer ✓ Expanded in Current High-Growth Markets ✓ Extended into Additional High-Growth Markets $15.1 ✓ Added to Franchise with Stable Deposit Gathering $14.1 Markets $12.5 $9.9 $9
Slide 11: Summary
Summary Creates a leading Midwest franchise with assets of ~$18 billion and enhanced growth potential Creates Southeast Michigan’s premier community banking franchise Bolsters Michigan presence and expands into highly attractive operating markets Compelling both strategically and financially Double-
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