First Busey in Champaign, Ill., is poised to enter the Chicago market after agreeing to buy First Community Financial Partners in Joliet, Ill.

The $5.4 billion-asset First Busey said in a press release Monday that it will pay $235.8 million in cash and stock for the $1.3 billion-asset First Community. The deal, which is expected to close in mid-2017, values First Community at 198.4% of its tangible book value.

“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,” Van Dukeman, First Busey’s president and CEO, said in the release.

Roy Thygesen, First Community’s president and CEO, will become First Busey’s market president for northern Illinois after the deal is completed.

First Busey said it expects the deal to be 4% accretive to its 2018 earnings and 5.3% accretive the next year. It should take about three years for the company to earn back the deal's expected 2.5% dilution to tangible book value.

First Busey plans to cut about a quarter of First Community's expenses. The company also expects to incur about $13.1 million in merger-related expenses.

Stephens Inc. and Barack Ferrazzano Kirschbaum & Nagelberg advised First Busey. FIG Partners and Howard & Howard advised First Community.

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