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First Waterloo Bancshares to acquire Best Hometown Bancorp for $12M

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First Waterloo Bancshares to acquire Best Hometown Bancorp for $12M

Waterloo, Ill.-based First Waterloo Bancshares Inc. agreed to acquire Collinsville, Ill.-based Best Hometown Bancorp Inc. in a deal valued at about $12.3 million.

Best Hometown shareholders will receive $14.89 in cash for each common share they own. The deal is expected to close in the first quarter of 2020.

S&P Global Market Intelligence calculates the deal at 99.3% of common equity, on an aggregate basis. The deal value is also 10.75% of assets and 12.57% of deposits.

S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Oct. 9, 2018, and Oct. 9, 2019, averaged 153.49% of book and 157.60% of tangible book and had a median of 16.55x last-12-months earnings, on an aggregate basis.

First Waterloo will enter Madison County, Ill., with two branches to be ranked ninth with a 1.87% share of approximately $5.24 billion in total market deposits.

As of June 30, First Waterloo had total assets of $489.0 million and Best Hometown had total assets of $114.5 million, according to S&P Global Market Intelligence data.

Sandler O’Neill Partners LP is First Waterloo's financial adviser, while Bryan Cave Leighton Paisner LLP served as legal counsel. Raymond James & Associates Inc. is Best Hometown's financial adviser in the deal and Howard & Howard Attorneys PLLC is the legal counsel.

To use S&P Global Market Intelligence's branch analytics tools to compare market overlap, click here. To create custom maps, click here.

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