Geneseo, Ill.-based Central Bank Illinois agreed to acquire Rochelle, Ill.-based First National Bank and Trust Co. of Rochelle, a unit of Ogle County BancShares Inc.
The companies did not disclose the financial terms of the deal.
SNL valuations for bank and thrift targets in the Midwest between Jan. 24, 2016, and Jan. 24, 2017, averaged 129.24% of book, 133.27% of tangible book and had a median of 18.24x last-12-month earnings, on an aggregate basis.
First National Bank has approximately $278 million in assets with three locations in Rochelle, Ashton and Oregon, Ill., the release noted. The combined entity, operating as Central Bank Illinois, will have total assets of approximately $850 million.
Central Bank, which is a unit of Central Banc Inc., has full-service branches in Geneseo, Andover, Fulton and Princeton, Ill., with limited-purpose loan offices in Prophetstown and Peru. Central Bank has approximately $615 million in total assets and $235 million in trust relationships.
The deal, which is subject to regulatory approvals, is expected to close early in the third quarter.
SNL data shows that Central Banc will enter Ogle County, Ill., with two branches to be ranked second with a 19.66% share of about $1.05 billion in total market deposits. It will also enter Lee County, Ill., with one branch to be ranked No.10 with a 4.00% share of roughly $716.8 million in total market deposits.
Kirk Hovde of Hovde Group LLC served as financial adviser to the seller.