First Mid-Illinois Bancshares Inc., which operates First Mid-Illinois Bank locations throughout central and southwestern Illinois, has announced it will acquire First BancTrust Corp., the holding company for First Bank & Trust, IL under an agreement announced Tuesday.
Under the agreement, First Mid will acquire all of the outstanding shares of First Bank. The acquisition provides First Mid with a deeper presence in what it calls the growing Champaign-Urbana region and extends its footprint into the adjacent counties to the east of its headquarters in Mattoon.
Under the terms of the agreement, First Bank shareholders will receive 0.80 shares of FMBH common stock and $5.00 in cash for each share of FIRT common stock. Based upon First Mid’s closing price of $38.67 on Dec. 8, 2017, the aggregate transaction value is approximately $73.8 million.
First Bank is a $466 million asset financial services holding company headquartered in Champaign. First Bank’s banking subsidiary, First Bank & Trust, is an Illinois-chartered bank and currently operates eight banking centers across three counties. As of September 30, 2017, First Bank had total deposits and loans of approximately $378 million and $368 million, respectively. Matthew Carr, president of First Bank, will join First Mid in a leadership role after the closing of the acquisition.
The transaction has been unanimously approved by each company’s board of directors and is expected to close in mid-2018, subject to regulatory approvals, the approval of First Bank’s stockholders and the satisfaction of customary closing conditions.
“The acquisition of First Bank deepens our presence in the attractive Champaign-Urbana market and provides expanded opportunities in adjacent counties,” said Joe Dively, chairman and chief executive officer. “First Bank has a long history of providing excellent service with a community-minded focus and the merged organizations will be even stronger. Finally, I am very excited to have Matt Carr join our organization with an expanded role while continuing to lead First Bank’s markets.”
Following completion of the transaction, First Mid is expected to have approximately $3.3 billion in total assets. In addition, First Mid currently operates a wealth and trust management business with approximately $1.5 billion in assets under management and an insurance business with $3.5 million in annual revenue. First Mid has a long history of successfully acquiring and integrating businesses. First Bank represents the fourth acquisition over the last three years, including three banking institutions and one insurance business.
Jack Franklin, chairman and chief executive officer of First Bank, said, “The culture and vision of the two companies align perfectly, making First Mid a natural strategic partner. First Mid’s strong capital position and additional services and capabilities provide First Bank’s customers with a larger lending capacity and an expanded array of products and services to choose from.”
“As previously announced, it is my intent to retire in 2018 and I will do so at the closing of the merger. I’m excited for Matt to continue to have a leadership position in the First Bank markets and a broader role under the combined company. We will work together to provide for a smooth integration of the two organizations. It has been a privilege to work with all the great employees and customers of First Bank and I am confident the combined company will continue our exceptionally strong commitment to customers, employees, communities and shareholders,” Franklin said.
FIG Partners, LLC acted as financial advisor and Schiff Hardin LLP served as legal advisor to First Mid. D.A. Davidson & Co. acted as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal advisor to First Bank.
A slide presentation relating to the transaction can be accessed under the investor relations section of First Mid’s website at www.firstmid.com. In addition, the presentation is included as an exhibit to the Form 8-K filed with the Securities and Exchange Commission announcing the transaction.
About First Mid-Illinois Bancshares, Inc.
First Mid-Illinois Bancshares Inc. is the parent company of First Mid-Illinois Bank & Trust, N.A. (“First Mid Bank”), Mid-Illinois Data Services, Inc., and First Mid Insurance Group. First Mid Bank was first chartered in 1865 and has since grown into a $2.8 billion community-focused organization that provides financial services through a network of 52 banking centers in 37 Illinois and Missouri communities. Its stock is traded in The NASDAQ Stock Market LLC under the ticker symbol “FMBH.” First Mid operates the former Clover Leaf Bank locations in southwestern Illinois.
About First BancTrust Corporation
First BancTrust Corp. headquartered in Champaign, is a bank holding company that serves the Champaign, Paris, Marshall, Rantoul, Martinsville and Savoy, Illinois communities through its wholly-owned commercial bank, First Bank & Trust, which has its main office in Paris, Illinois. The bank provides full-service commercial and consumer banking. First BancTrust Corporation common stock is traded on the OTCQX under the ticker symbol “FIRT.”