First Mid Bancshares to acquire Providence Bank owner First Mid Bank & Trust
First Mid Bancshares, the parent company of First Mid Bank & Trust, has agreed to acquire LINCO Bancshares, the holding company for Missouri-based Providence Bank, in a cash-cum-stock deal worth around $144.9 million.
Providence Bank is a state-chartered depository trust company with approximately $1.2 billion in assets. It offers community banking and is mainly involved in offering a variety of banking and financial services in parts of Missouri, Illinois, and Texas.
Currently, Providence Bank has 14 banking centers across Missouri and Fairview Heights in Illinois. Providence Bank also operates a full-service banking center called Premier Bank Texas in Grapevine, Texas along with Providence Bank Agency Finance and Providence Bank Mortgage Center.
Joe Dively – Chairman and CEO of First Mid Bancshares said: “Providence has a long history of providing excellent service to the communities it serves and we are looking forward to combining forces and providing even more financial solutions for customers and communities.
“We have consistently shared our strategic intent to diversify our geographic footprint and this merger expands our presence in the Mid-Missouri and St. Louis Metro markets.”
First Mid Bancshares is a $4.5 billion community-focused organization based in Illinois that offers a full-suite of financial services such as banking, brokerage, wealth management, insurance, and others.
It has a network of locations throughout Illinois and eastern Missouri apart from a loan production office in the greater Indianapolis region.
Upon closing of the deal, First Mid Bancshares is anticipated to have nearly $5.3 billion in total assets.
The combined bank holding company will increase its footprint in its St. Louis Metro market to nearly $1.1 billion in loans.
Kit Stolen – President and CEO of Providence Bank said: “This combination expands the products and services available to our customers, particularly both wealth management and insurance.
“Our Providence banking centers in the Metro West St. Louis align perfectly with First Mid’s existing Metro St. Louis presence, which will greatly enhance access for our combined client base. Along with First Mid’s strong deposit platform, a larger lending limit from the combined organization will provide significant growth and enhanced opportunities for the customers and communities we serve.”
As per the terms of the deal, LINCO Bancshares’ shareholders will get $116.5 million in cash and 1,262,246 shares of First Mid Bancshares’ stock.
The deal, which is subject to regulatory approvals and the meeting of customary closing conditions, is likely to be closed in Q1 2021.