First Mid Bancshares has signed a definitive agreement to acquire Missouri-based Delta Bancshares Company for nearly $106.3m.
Under the terms of the deal, First Mid Bancshares will issue 2,282,512 shares and pay $15.2m in cash as consideration to Delta’s shareholders and option holders.
Delta is a $697m asset institution and the parent company of Jefferson Bank and Trust. It has five branches throughout the metro area.
The combination, slated to close in fourth quarter of 2021, will bolster First Mid Bancshares’ footprint in Missouri. The completion of the deal is subject to regulatory approvals and other closing conditions.
Separately, First Mid Bancshares signed another agreement to purchase assets of another financial institution in the St. Louis market. The deal will see First Mid Bancshares acquire $225m in loans and $280m in deposits, as well as a relationship team.
This deal is expected to close in September 2021, subject to regulatory approval.
First Mid chairman and CEO Joe Dively said: “The geographic synergies and financial metrics of these transactions are compelling and consistent with our strategy of deepening our presence in the attractive St. Louis market.
“This combination will move us to 11th in market share with $1.8 billion of deposits within the St. Louis MSA.”
Commenting on the other deal, Dively added: “The proposed loan and deposit acquisition is similar to the one we completed in April of last year. We reviewed nearly all the loans and have extensive knowledge with both the borrowers and the commercial lenders.”
First Mid Bancshares is a $5.8bn organisation offering banking, wealth management, brokerage and insurance services.
It is the parent company of First Mid Bank & Trust, First Mid Insurance Group and First Mid Wealth Management.
Last year, First Mid Bancshares signed a deal to acquire LINCO Bancshares, the holding company for Missouri’s Providence Bank. The deal closed in February this year.