First Mid Bancshares has entered two definitive agreements to acquire Delta Bancshares company, as well as a $225 million loan and deposit portfolio.
Delta is the parent company of Missouri-based Jefferson Bank and Trust. It currently operates five branches throughout the metro areas. As of June 30, 2021, Delta had approximately $697 million in total assets, $484 million in loans and $546 million in deposits.
“The geographic synergies and financial metrics of these transactions are compelling and consistent with our strategy of deepening our presence in the attractive St. Louis market,” said Joe Dively, chairman and CEO of First Mid. “This combination will move us to 11th in market share with $1.8 billion of deposits within the St. Louis MSA.”
Under the terms of the agreement Delta shareholders and option holders will receive approximately $15.2 million in cash and 2,238,512 shares of FMBH stock.
“The merger provides customers access to a larger banking network and an expanded array of services. Our shared community banking philosophies will provide significant value for our shareholders, employees and customers,” commented Mike Ross, chairman of Delta.
The transaction with Delta has been approved by both Delta’s and First Mid’s board of directors and is expected to close in the fourth quarter of 2021, subject to regulatory approvals.
Meanwhile Munster-based Finward Bancorp will merge with Royal Financial. Royal Savings Bank will merge with and into Finward Bancorp’s wholly owned subsidiary Peoples Bank.
The integration is expected to be complete in the second quarter of 2022.
“This partnership is a strong cultural, strategic, and financial fit for both of our organizations. Our companies have a long history of serving our communities and helping our customers be more successful,” said Benjamin Bochnowski, president and chief executive officer of FNWD. “By joining together, we expect to achieve more on a greater scale to help us serve our customers and communities better than ever before.”
As part of the merger, Peoples Bank expects to close at least one Royal Savings Bank location adds Bocbnowski and is set to conduct a thorough market review of its footprint.
"With that in mind, we are committed to evaluating all Royal Savings Bank employees for potential roles post-close. In the end, we intend to have a strong market presence in the city of Chicago, Chicagoland, and our core market of Northwest Indiana,” Bochnowski added.
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