Dive Brief:
- Terre Haute, Indiana-based First Financial Corp. will acquire First Illinois Corp. for roughly $111.3 million, the banks said Thursday.
- The transaction, set to close in the fourth quarter, will bring Hickory Point Bank and Trust under First Financial’s umbrella. That will give the Indiana bank eight added branches in central Illinois strongholds such as Decatur, Champaign and Springfield.
- Under Thursday’s deal, First Illinois stockholders will receive a choice of either 0.5727 First Financial shares for each First Illinois share they own, or $44.35 in cash per share, the banks said. The balance of the deal value will be 70% stock and 30% cash, the lenders added.
Dive Insight:
The combination will create a bank with roughly $6.9 billion in assets, $5.5 billion in deposits and $4.9 billion in loans. It will also push First Financial’s branch total to 95 and expand its presence in Illinois.
"Hickory Point Bank brings an attractive core deposit franchise and strong balance sheet liquidity that will enhance our funding profile and support continued growth," First Financial CEO Norman Lowery said in a statement Thursday.
Hickory Point counted roughly $717 million in assets, $627 million in deposits and $438 million in loans as of June 30.
“This combination will provide our customers and employees with access to additional resources and capabilities while delivering meaningful value to our stockholders,” Hickory Point CEO Anthony Nestler said in a statement. “We are pleased to be joining an organization that shares Hickory Point Bank’s commitment to relationship-focused community banking.”
The deal’s $111.3 million value is based on First Financial’s $79.07 stock price from Wednesday, for an implied purchase price of $45 per First Illinois share.
Notably, the lender is not the only Midwestern lender named First Financial to be expanding in Illinois. Cincinnati-based First Financial Bancorp announced last month it would buy Finward Bancorp, which counts branches in northwest Indiana and Chicago.
