HBT Financial in Bloomington, Ill., has agreed to buy Town and Country Financial in Springfield, Ill.
The $4.2 billion-asset HBT said in a press release that it will pay $101.4 million in cash and stock for the $875 million-asset Town and Country. The deal, which is expected to close in the first quarter, priced Town and Country at 139% of its tangible book value.
Town and Country has $624 million of loans and $744 million of deposits.
HBT said it expects the deal to be 17% accretive to its 2023 earnings per share, excluding merger expenses. It should take HBT two years to earn back an estimated 4.7% dilution to its tangible book value.
HBT plans to cut about 28.5% of Town and Country’s annual noninterest expenses. HBT expects to incur roughly $13.5 million of merger-related expenses.
Town and Country “is a highly compatible franchise that we have respected and admired for a long time,” Fred Drake, HBT’s chairman and CEO, said in the release.
“Operating with a similar relationship-based approach to commercial banking and conservative credit culture, Town and Country has built a high-performing institution with an attractive deposit base,” Drake added. “We believe that combining with Town and Country will help us continue generating profitable growth and create additional value for shareholders in the years ahead.”
Piper Sandler and Vedder Price advised HBT. Keefe, Bruyette & Woods and Barack Ferrazzano Kirschbaum & Nagelberg advised Town and Country.