Blackhawk Bank, the banking subsidiary of Blackhawk Bancorp, is currently operating 10 full-service banking centres located across Wisconsin and Illinois and as of 31 December 2022, held total assets of around $1.32bn, loans of $782m, and deposits of $1.19bn
American bank holding company First Mid Bancshares has agreed to acquire Blackhawk Bancorp, the parent company of Wisconsin-based Blackhawk Bank, in an all-stock deal worth $90.3m.
First Mid Bancshares is the parent company of First Mid Bank & Trust, First Mid Insurance Group, and First Mid Wealth Management. The $6.7bn bank holding company has operations in Missouri and Texas along with a loan production office in Indianapolis.
Blackhawk Bank is currently operating 10 full-service banking centres located across Wisconsin and Illinois.
As of 31 December 2022, Blackhawk Bancorp held total assets of around $1.32bn, loans of $782m, and deposits of $1.19bn.
Serving the Beloit community in Wisconsin since 1881, the bank holding company ventured into northern Illinois in 1996.
Blackhawk Bancorp chairman, president, and CEO Todd James said: “We are excited to join forces with First Mid, a like-minded partner that shares our commitment to supporting the communities we serve and building strong long-term relationships with customers.
“Our communities, customers, employees and shareholders will benefit from access to a larger banking organization offering larger loan limits and a broader array of services, including wealth management, trust, insurance and agricultural services.”
As per the terms of the deal, Blackhawk Bancorp’s shareholders will exchange each of their shares for 1.15 shares of the Nasdaq-listed First Mid Bancshares.
The combined bank holding company will have a total of $8.1bn in assets.
First Mid Bancshares chairman and CEO Joe Dively said: “Blackhawk has a long history of providing excellent service with a community-minded focus that aligns very well with First Mid’s philosophy.
“We have been talking to Todd and his team for a number of years about a possible combination of our organisations. And, while there is volatility in the equity markets for banks today, the discussions which led to today’s announcement started a long time ago.
“We have partnered with Blackhawk on many projects over the last several years and could not be more confident in the cultural and strategic alignment.”
The deal has been approved unanimously by the boards of directors of the two bank holding firms.
Its closing, which is contingent on regulatory approvals, the approval of Blackhawk Bancorp’s stockholders, and other customary conditions, is anticipated to occur in the latter half of this year.
Last year, First Mid Bancshares acquired Delta Bancshares to expand its footprint in the St. Louis market area in Missouri, while adding $718m in total assets, $560m in deposits, and loans of $424m.