Illinois-based First Busey, the parent of Busey Bank, has agreed to acquire local rival First Community Financial Partners, the parent of First Community Financial Bank, in a transaction valued at about $235.8m.

First Community has nine branches in Will, DuPage and Grundy counties, which cover portions of Chicago’s southwestern suburbs. The bank manages more than $1.26bn in assets.

As per the terms of the merger deal, shareholders of First Community will receive 0.396 shares of First Busey common stock and $1.35 in cash for each share of First Community common stock.

First Community president and CEO Roy Thygesen will take over as executive vice-president and market president for Northern Illinois at Busey Bank post deal completion in mid-2017.

First Community Financial Bank is expected to be integrated with and into Busey Bank in late 2017 following completion of the merger of the holding companies.

First Busey president and CEO Van Dukeman said: “This business combination is consistent with our strategy of expanding into markets with both population and commercial density in the Midwest through disciplined partnerships with companies who have similar operating and cultural philosophies.

“Joining two of the best community banks in Illinois together offers significant growth possibilities for the combined customer, associate, community and shareholder base.”