Business
First Mid Bancshares, Inc. Announces Acquisitions of Delta Bancshares Company and St. Louis Based Loan and Deposit Portfolio and Team
MATTOON, Ill., July 29, 2021 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) announced today that it has entered into two
About this update from First Mid Bancshares, Inc.
[{"type":"text","content":"MATTOON, Ill., July 29, 2021 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) announced today that it has entered into two separate definitive agreements under which the Company will acquire Delta Bancshares Company (“Delta”) and also a loan and deposit portfolio, along with the relationship team, in the St. Louis market. Delta is the parent company of Jefferson Bank and Trust (“Jefferson”) and is headquartered in St. Louis, Missouri, operating five branches throughout the metro area. As of June 30, 2021, Delta had approximately $697 million in total assets, $484 million in loans and $546 million in deposits. Delta is a private company with a 129-year history of providing financial services to the St. Louis market. Under the terms of the agreement with Delta, its shareholders and option holders will receive an aggregate of approximately $15.2 million in cash and 2,282,512 shares of FMBH stock. Delta’s outstanding stock options will be fully vested upon consummation of the merger, and all outstanding Delta options that are unexercised prior to the closing will be cashed out. Based on First Mid’s price per share at the closing on July 28, 2021 of $39.90, the aggregate consideration to be paid by First Mid is approximately $106.3 million, subject to certain conditions and adjustments. In addition, the Company entered into an agreement to acquire approximately $225 million in loans and $280 million in deposits from a separate financial institution in the St. Louis market. The acquisition will include four commercial lenders who have the primary relationships with the acquired customers and two support personnel. On a combined basis, the two transactions are estimated to be approximately 14% accretive to earnings per share in 2022 (excluding nonrecurring transaction expenses). Estimated tangible book value per share dilution to First Mid is expected to be earned back in 1.8 years under the crossover method. The Company expects to achieve cost savings of 30% of the combined noninterest expense. While revenue synergies are anticipated, they have not been included in the estimates. Upon closing of the transactions, the Company expects to remain above well-capitalized standards on all regulatory capital ratios with a Tier 1 Leverage Ratio of approximately 8.8%, a Total Risk-Based Capital Ratio of approximatel...