First Illinois Bancorp Inc. agreed to acquire Eureka, Mo.-based Rockwood Bancshares Inc. in an all-cash transaction, according to a news release posted on the St. Louis Post-Dispatch.
As part of the deal, Rockwood Bancshares unit Rockwood Bank will merge with and into First Illinois Bancorp unit Lindell Bank & Trust Co.
The transaction is expected to close in the second quarter.
S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Jan. 8, 2019, and Jan. 8, 2020, averaged 139.71% of book and 145.20% of tangible book and had a median of 16.05x last-12-months earnings, on an aggregate basis.
Lindell Bank has about $530 million in total assets, while Rockwood Bank has total assets of roughly $250 million, according to the news release.
The combined bank, which will have more than $750 million in total assets, will operate under Lindell Bank's name.
Based on S&P Global Market Intelligence data, First Illinois Bancorp will expand in St. Louis County, Mo., by three branches to be ranked No. 26 with a 0.72% share of about $35.89 billion in total market deposits, and will enter Jefferson County, Mo., with one branch to be ranked No. 14 with a 1.86% share of roughly $2.62 billion in total market deposits.
Lewis Rice LLC served as First Illinois Bancorp's legal adviser. BKD Capital Advisors LLC acted as financial adviser and Polsinelli PC served as legal adviser to Rockwood Bancshares.