Monmouth, Ill.-based Western Illinois Bancshares Inc., the holding company of Midwest Bank, is acquiring Andalusia, Ill.-based Andalusia Community Bank.
The terms of the deal were not disclosed.
SNL valuations for bank and thrift targets in the Midwest region between May 30, 2017, and May 30, 2018 averaged 161.22% of book, 168.84% of tangible book and had a median of 21.76x last-12-months earnings, on an aggregate basis. Western Illinois Bancshares will enter Rock Island County, Ill., with two branches to be ranked No. 15 with a 1.31% share of approximately $2.58 billion in total market deposits.
Upon completion of the deal, Andalusia Community Bank will merge into Midwest Bank, with Midwest Bank becoming the surviving institution. The consolidated bank will have a total asset size of about $500 million.
The deal is anticipated to close during the third quarter. Following the completion of the transaction, Christopher Gavin, president and CEO of Midwest Bank, will serve as president and CEO of the combined company. Michael Bell, CEO of Andalusia Community Bank, will serve as vice president and market president of Quad City area in Illinois of the combined company.
As of March 31, Midwest Bank had $443.8 million in assets, while Andalusia Community Bank had total assets of $39.6 million.
Sandler O'Neill & Partners LP served as financial adviser to Western Illinois Bancshares, while Howard & Howard Attorneys PLLC and Spears & Spears served as legal counsel. D.A. Davidson & Co. served as financial adviser to Andalusia Community Bank and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel.
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