Chicago is My Home

01
Jul

First Chicago Bancorp to Merge With Indianapolis-Based White River Capital

Author: Adam Fendelman, Category: Business

CHICAGO – Commercial banking and mortgage company First Chicago Bancorp announced on Monday it will merge with automobile finance company White River Capital. Terms of the deal were not disclosed.

In a joint statement, the institutions said First Chicago shareholders will receive one share of White River common stock for each two shares of First Chicago common stock. First Chicago shareholders will assume control of 61.2 percent of White River.

The combined company’s board of directors will include the nine current First Chicago board members as well as the addition of White River executives Thomas Heagy and Denial Porter. One board member (John Rose) currently sits on the board of both companies and will continue on the board following the merger.

“This unique transaction that combines our companies will provide First Chicago with an opportunity to diversify its portfolio by adding a higher-yield asset class managed by an exceptionally experienced and proven team,” said First Chicago CEO William Ruh in a Monday statement.

Privately held First Chicago has seven branches and $1.2 billion in assets. White River’s last stock trade was at $15.30.

By Megan O’Neil