First Mid is expected to pay a consideration of around $144.9m, including $116.5m in cash, and 1,262,246 shares of FMBH stock
First Mid Bancshares and LINCO Bancshares to merge. (Credit: Gerd Altmann from Pixabay.)
US-based financial services provider First Mid Bancshares has agreed to acquire LINCO Bancshares, the holding company for Providence Bank, for around $144.9m.
Under the terms of the agreement, First Mid is expected to pay the consideration of around $144.9m, which includes $116.5m in cash, and 1,262,246 shares of FMBH stock issued to LINCO shareholders.
The shares are priced at $22.50, based on the price of First Mid shares at the closing on 25 September.
The deal will see addition of one board member from LINCO to the First Mid board.
First Mid chairman and chief executive officer Joe Dively 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. In addition to St. Louis, Providence has deep relationships in Columbia, where it is headquartered, and in the Jefferson City and Osage Beach markets.”
On completion of the deal, First Mid to have nearly $5.3bn in total assets
First Mid Bancshares is the parent company of First Mid Bank & Trust, First Mid Insurance Group, and First Mid Wealth Management.
The firm provides financial services including banking, wealth management, brokerage, Ag, and insurance services.
The company claimed that its wealth and farm management business has assets under management valuing around $4.1bn as of 30 June 2020, and its insurance business generated more than $16m revenue in 2019.
Once the transaction is completed, First Mid is expected to have around $5.3bn in total assets
Approved by the board of directors of both companies, the transaction is expected to be completed in the first quarter of 2021, subject to regulatory approvals and customary closing conditions.
For the transaction Piper Sandler & Co served as financial advisor and Schiff Hardin as legal advisor to First Mid, while Keefe, Bruyette & Woods, served as financial advisor and Stinson as legal advisor to LINCO.
LINCO chairman Bill Laurie said: “Our family is excited to partner with First Mid to achieve our goal of creating a larger banking organization that will broaden and strengthen the products and services available to our customers.
“Providence Bank and First Mid share a like-minded focus on commitment to the communities we serve and First Mid is a perfect fit culturally and strategically for our customers, employees and shareholders.”