Mattoon, Ill.-based First Mid-Illinois Bancshares Inc. is acquiring First BancTrust Corp. of Champaign, Ill.
Each First BancTrust share will be exchanged for 0.80 share of First Mid common stock and $5.00 in cash. Based on the buyer's Dec. 8 closing price of $38.67, the deal is valued at $73.8 million in the aggregate.
SNL calculates that the deal value is 156.8% of book and 158.6% of tangible book and 22.6x earnings, on a per-share basis. The price is 15.86% of assets, 19.54% of deposits and the tangible book premium-to-core deposits ratio is 9.78%. Meanwhile, the deal has a one-day premium of 66.37%, based on First BancTrust's Dec. 8 closing price of $21.60 and a one-month premium of 66.76%, based on First BancTrust's Nov. 13 closing price of $21.55.
For comparison, SNL valuations for bank and thrift targets in the Midwest region between Dec. 11, 2016, and Dec. 11, 2017, averaged 169.21% of book, 180.45% of tangible book and had a median of 21.96x last-12-months earnings, on a per-share basis.
First Mid and First BancTrust are the respective parent companies of First Mid-Illinois Bank & Trust NA and First Bank & Trust IL. As of Sept. 30, First BancTrust had $465.6 million in assets, $378 million in deposits and $368 million in loans. The combined company is projected to have approximately $3.3 billion in total assets.
First Mid will expand in Champaign County, Ill., by four branches to be ranked fourth with a 4.49% share of approximately $5.20 billion in total market deposits. It will enter Edgar County, Ill., with two branches to be ranked second with a 26.45% share of approximately $471.4 million in total market deposits. And it will enter Clark County, Ill., with two branches to be ranked second with a 25.81% share of approximately $391.7 million in total market deposits.
The transaction, which is still subject to regulatory and First BancTrust shareholder approvals, is expected to close in mid-2018. First BancTrust CEO Jack Franklin will retire following completion. First Bank & Trust President Matthew Carr will join the acquirer in a leadership role.
FIG Partners LLC and Schiff Hardin LLP served as First Mid's financial adviser and legal counsel, respectively. For First BancTrust, it was D.A. Davidson & Co. and Barack Ferrazzano Kirschbaum & Nagelberg LLP.
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