First Mid Bancshares in Mattoon, Ill., has agreed to buy Evergreen Bancshares in Wellsville, Mo.
The $9.4 billion-asset First Mid said in a press release that it will pay $70.7 million in cash and stock for the parent of the $932 million-asset American Bank of Freedom. The deal, which is expected to close in the first quarter, priced Evergreen at 110% of its tangible book value.
American Bank has 10 branches, $712 million in loans, and $727 million in deposits.
“This acquisition will deepen and extend our presence in Missouri, Illinois, and Indiana while better positioning us to move past the $10 billion asset threshold,” Matthew Smith, First Mid’s president and CEO, said in the release.
The deal is expected to be 5% accretive to First Mid’s 2028 earnings per share, including lost interchange fee income tied to the Durbin Amendment. It should take less than six months for First Mid to earn back an estimated 0.5% dilution to its tangible book value.
First Mid expects to cut a third of Evergreen’s annual noninterest expense, or roughly $7.6 million, along with about $900,000 of annual pretax savings from branch closings. First Mid expects to incur $13.8 million of pretax merger-related expenses.
Stephens and ArentFox Schiff advised First Mid. Keefe, Bruyette & Woods and Husch Blackwell advised Evergreen.