Bloomington, Ill.-based HBT Financial, Inc., is expanding its in-state footprint by buying Springfield-based Town and Country Financial Corp., for $101 million.
The $875 million Town and Country Bank has 10 branches in central Illinois and the eastern St. Louis metro. Following the merger, the $4.2 billion, 61-branch HBT Financial will grow to more than $5 billion and enter Springfield, Decatur, Jacksonville, Quincy and St. Louis Metro East markets.
The deal is expected to close in the first quarter of next year.
HBT Financial Chair and CEO Fred Drake called Town and Country “a highly compatible franchise that we have respected and admired for a long time.
“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,” he said. “Throughout our history, our disciplined approach to M&A has helped us to consistently enhance the value of our franchise. 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.”
Excluding transaction expenses, the transaction is expected to have earnings per share accretion of 17 percent next year. Town and Country shareholders are expected to hold approximately 11 percent of HBT outstanding common stock following the merger.
Town and Country Financial Executive Chair David Kirschner called HBT Financial “an ideal merger partner that shares our commitment to superior customer service and supporting the communities in which we operate, and we believe this combination will provide many benefits for our shareholders, employees and customers.”
Vedder Price P.C. served as legal counsel and Piper Sandler & Co. was financial adviser to HBT. Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel and Keefe, Bruyette & Woods served as financial adviser to Town and Country.