HBT Financial in Bloomington, Illinois, agreed to acquire Town and Country Financial Corp. in Springfield, Illinois, for $101.4 million.
The $875 million-asset Town and Country had total loans held for investment of $624 million and deposits of $744 million at the close of the second quarter. The bank serves markets in central Illinois and the St. Louis Metro East area.
"Operating with a similar relationship-based approach to commercial banking and conservative credit culture, Town and Country has built a high-performing institution with an attractive deposit base," Fred Drake, chairman and CEO of the $4.2 billion-asset HBT Financial, said in a press release after markets closed Tuesday. "We believe that combining with Town and Country will help us continue generating profitable growth and create additional value for shareholders in the years ahead."
The cash-and-stock deal is expected to close in the first quarter of 2023, HBT Financial said. Based on June 30 data, the combined company would have total assets of more than $5 billion, loans held for investment of about $3.1 billion and deposits of $4.4 billion.
The acquisition would expand HBT Financial's Illinois footprint into Springfield and St. Louis Metro East, a region that includes the Illinois part of the St. Louis metro area and surrounding counties.
HBT Financial estimated earnings per share accretion from the deal of 17% in 2023. It expects to earn back book value dilution in two years.
