2 months, 3 weeks ago by 0
Deal could be finalized on Monday
Mercantile Bank announced today that United Community Bancorp, Inc. (UCB) has submitted the highest and best offer for Mercantile Bank in the auction held as scheduled on Thursday, September 12.
A news release from Mercantile Thursday afternoon said UCB was "considered the successful bidder."
UCB’s purchase agreement with Mercantile Bancorp, Inc. to purchase 100% of the shares of Mercantile Bank’s common stock outstanding and the M stylized logo trademark stands as originally agreed to as announced on June 27.
“This has been a long and arduous process for all parties involved, and one we are glad to see come to such a positive resolution for so many,” said Todd Wise, President and CEO of United Community Bank. “We look forward to having Mercantile Bank’s strengths, heritage, employees, and its valued customers become an important part of the UCB bank family.”
“We are very excited about this outcome and look forward to joining the UCB team,” said H. Blaine Strock, President and CEO of Mercantile Bank. “Our commitment to our customers and the communities we serve align perfectly; and UCB’s strength ensures that Mercantile Bank will continue to help area individuals, families, and businesses with their financial needs for generations to come.”
Mercantile Bancorp, the holding company which owns Mercantile Bank and filed bankruptcy in June, owes roughly $76 million in principal and interest on junior subordinated debentures, much of the debt taken on between 2005 and 2007 to finance the acquisition of now-former subsidiaries, according to court documents.
The holding company once owned six subsidiary banks but sold three of them since 2009. It saw plans to sell the other two end when state regulators closed Heartland Bank and Royal Palm Bank in 2012, court records stated.
All parties intend to proceed as planned pending the court’s decision on Monday, September 16.