BLOOMINGTON, Ill. - Commerce Bancshares, St. Louis, agreed Monday to acquire Peoples Mid-Illinois Corp. in a stock swap valued by the American Banker at approximately $89.3 million.
The merger will add $1 billion of assets to Commerce's $7.8 billion.
Commerce intends to exchange 2.8 million shares of its stock, at a ratio of 0.7987, based on 3,550,328 shares of Peoples that are currently issued and outstanding.
Commerce shares recently traded at $31 per share.
The transaction is expected to be completed in the first quarter of 1995. "Expansion in central Illinois is a top priority for us," said David Kemper, Commerce's chief executive.
"This will significantly increase our presence with a premier bank in a top market."
People's CEO Andrew Anderson said his company had been considering "joining a large banking company that would enable us to offer additional services and products to our customers while allowing us to grow in this competitive environment."