Nuvo Bank acquired by Merchant’s Bank in recent merger

Date: 10/30/2015

SPRINGFIELD – At a recent special meeting, the shareholders of NUVO Bank & Trust Company overwhelmingly voted to approve the Merger Agreement between NUVO and Merchants Bancshares, Inc., the parent company of Merchants Bank, and the related Bank Merger Agreement between NUVO and Merchants Bank pursuant to which Merchants Bank will acquire NUVO.

The shareholders of NUVO approved the Merger Agreement by the affirmative vote of the holders of 84.5 percent of the outstanding shares of NUVO.  Of the shares voted, approximately 97.6 percent of the shares were voted in favor of approval of the transaction.

Consummation of the merger, which is subject to regulatory approval and the satisfaction of the other conditions of the Merger Agreement, is expected to occur on or about Nov. 30.

Under the terms of the Merger Agreement, shareholders of NUVO will be entitled to elect to receive either 0.2416 shares of Merchants common stock, $7.15 in cash or a combination of Merchants common stock and cash for each share of NUVO common stock outstanding, subject to the allocation and proration provisions contained in the Merger Agreement, which will result in the total consideration being comprised of approximately 75 percent stock and 25 percent cash.  Election forms will be mailed to NUVO shareholders.

Donald R. Chase, chairman of the Board of Directors of NUVO, stated, “We appreciate the support that our shareholders have shown for the merger by their overwhelming vote in favor of the transaction.”

M. Dale Janes, chief executive officer of NUVO, added “We are confident our customers will benefit from the merger because of the expanded products and services that will be available to them when NUVO becomes part of Merchants Bank. In working with the people from Merchants Bank in preparing for the closing of the merger, we are finding that they are committed to serving our customers, communities and employees in the best possible way.”