First Financial in Terre Haute, Ind., has agreed to buy First Illinois Corp. in Decatur.
The $6.2 billion-asset First Financial said in a press release that it will pay $111.3 million in cash and stock for the parent of the $717 million-asset Hickory Point Bank. The deal, which is expected to close in the fourth quarter, priced First Illinois at 135% of its tangible book value.
Hickory Point has eight branches, $438 million in loans and $627 million in deposits.
“Hickory Point Bank brings an attractive core deposit franchise and strong balance sheet liquidity that will enhance our funding profile and support continued growth,” Norman Lowery, First Financial’s president and CEO, said in the release.
First Financial plans to cut 34% of the seller’s annual noninterest expense. It expects to incur $10.8 million of pretax merger-related expenses.
The deal is expected to be 6% accretive to First Financial’s 2027 earnings per share. It should take slightly more than two years for the company to earn back an estimated 3.2% dilution to its tangible book value.
Raymond James and Amundsen Davis advised First Financial. Piper Sandler and Barack Ferrazzano Kirschbaum & Nagelberg advised First Illinois.