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First Clover Leaf to be sold to First Mid-Illinois Bancshares

From Illinois Business Journal news services

EDWARDSVILLE — One of the Metro East’s most venerable financial institutions, First Clover Leaf Financial Corp., has entered into an agreement to be acquired by First Mid-Illinois Bancshares, Inc., based in Mattoon.

First Mid-Illinois Bancshares, Inc. has announced the execution of a definitive agreement under which First Mid will acquire all of the outstanding shares of the Edwardsville-based First Clover Leaf in a cash and stock transaction valued at $12.87 per share, or a total of approximately $90 million.

Under the terms of the agreement, First Clover Leaf’s stockholders may elect to exchange each share of First Clover Leaf common stock for either $12.87 in cash or .495 of a share of First Mid common stock, subject to certain potential adjustments.

Overall elections are subject to proration such that 25 percent of the First Clover Leaf shares will be exchanged for cash and 75 percent for First Mid stock.

The stock portion of the transaction is intended to be tax-free to stockholders. The consideration represents a 34 percent premium to First Clover Leaf’s stock price as of the close of business on April 25, 2016. First Clover Leaf’s stock closed Monday at $9.60.

With nearly $655 million in total assets, First Clover Leaf is the holding company for First Clover Leaf Bank and headquartered in Edwardsville. First Clover Leaf Bank currently operates seven full-service banking centers in Illinois and Missouri, with total deposits of approximately $533 million and $427 million in loans as of Dec. 31, 2015.

“The acquisition of First Clover Leaf Bank expands our presence in the attractive St. Louis metro east market area and for the first time, establishes a presence outside the state of Illinois,” said Joe Dively, First Mid chairman and chief executive officer.

“We look forward to building on First Clover Leaf Bank’s legacy of long-standing relationships in their communities, while earning the trust and continued business of First Clover Leaf Bank customers.” David Kuhl, president and chief executive officer of First Clover Leaf, said in a statement.

“Choosing a partner that mirrored First Clover Leaf Bank’s community banking business model was very important. First Mid-Illinois Bancshares and First Mid-Illinois Bank & Trust exemplify what being a community bank is all about. We are excited about the additional services they will provide to our customers in the future and the outstanding support they will provide to our communities. Our employees will benefit from additional career opportunities as well,” Kuhl said.

The transaction is subject to customary closing conditions, including regulatory approvals and approval by First Mid and First Clover Leaf stockholders and is presently anticipated to close by the fourth quarter of 2016.

First Mid-Illinois Bank & Trust has 46 banking centers in 33 communities, including two in Highland and one in Maryville.
First Clover Leaf has six Metro East offices in Edwardsville, Swansea, Wood River and Highland and a location in Clayton, Mo.

First Mid was advised by FIG Partners, LLC and the law firm of Schiff Hardin LLP. First Clover Leaf was advised by Raymond James & Associates, Inc. and the law firm of Barack Ferrazzano Kirschbaum & Nagelberg LLP.


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