First Mid, LINCO merging

Illinois-based First Mid Bancshares has inked a deal to acquire LINCO Bancshares, Inc., and its subsidiary Providence Bank for $144.9 million in a cash and stock transaction.

Providence, Columbia, Mo., has $1.2 billion in assets and $909 million in deposits. It has offices in Columbia, Jefferson City, Osage Beach, Elsberry, Winfield and Greater St. Louis, Mo.; Fairview Heights, Ill., and Grapevine, Texas, where it has maintained the Premier Bank Texas brand since it was acquired in 2010. Providence also has an LPO in Indianapolis.

“Providence has a long history of providing excellent service to the communities it serves and we are looking forward to combining forces and providing even more financial solutions for customers and communities,” said Joe Dively, chair and CEO of Mattoon-based First Mid. “We have consistently shared our strategic intent to diversify our geographic footprint and this merger expands our presence in the Mid-Missouri and St. Louis Metro markets.”

One LINCO director will join First Mid’s board following close of the deal in first quarter 2021. First Mid will then have $5.3 billion in assets (excluding PPP loans), and its St. Louis Metro market presence will be $1.1 billion in loans.

“As we deepened the relationship with the First Mid team over the last year, the similarities of our two organizations were evident and such alignment will provide great value to all our stakeholder,” said Providence President Kit Stolen. “Our Providence banking centers in the Metro West St. Louis align perfectly with First Mid’s existing Metro St. Louis presence, which will greatly enhance access for our combined client base.”

LINCO shareholders will receive an aggregate of $116.5 million in cash and 1,262,246 shares of FMBH stock. The transaction is expected to be approximately 20 percent accretive to earnings per share in the first full year after close. Estimated tangible book value per share dilution to First Mid is expected to be earned back in 2.25 years.

Piper Sandler & Co. acted as financial advisor and Schiff Hardin LLP served as legal advisor to First Mid. Keefe, Bruyette & Woods acted as financial advisor and Stinson LLP served as legal advisor to LINCO.