Mercantile to merge with First Financial Bancorp

Mercantile Bancorporation Inc., the St. Louis-based $32 billion bank holding company, plans to merge with First Financial Bancorporation, headquartered in Iowa City, Iowa, according to a Mercantile press release.

Based on Mercantile's closing stock price of $52.8125 May 7, the transaction is valued at approximately $169 million.

First Financial is the $550 million one-bank holding company for First National Bank Iowa, which operates in 10 locations.

The merger will substantially strengthen Mercantile's market share position in Iowa.

"The merger with First Financial, in conjunction with the recently announced Financial Services Corporation of Rock Island, Ill., merger, complements Mercantile's existing franchises in east and east-central Iowa," said W. Randolph Adams, senior executive vice president and chief administrative officer of Mercantile Bancorporation Inc., in the release. "We now have a prominent Iowa market presence, reaching from the Mississippi River to the state's western border."

First Financial Bancorporation shareholders will receive 0.88 shares of Mercantile common stock for each share of First Financial Bancorporation common stock.

"The opportunity to affiliate with Mercantile provides us with an exceptional financial partner who shares our same community banking philosophy," said Robert M. Sierk, president and chief executive officer of First Financial Bancorporation, in the release. "Since Mercantile entered the Iowa market in 1993, we have watched their growth and progress, as well as their commitment to the communities they serve."

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