First Mid Blackhawk Bank Expands Through Acquisition

First Mid Blackhawk Bank has a long history of growth and expansion. Founded in 1926, the bank has been serving the communities of Illinois and Missouri for over 95 years.

The bank's commitment to growth and expansion is evident in its recent acquisition of First Bankers Trust Company. This acquisition has significantly expanded First Mid Blackhawk Bank's presence in the region.

First Mid Blackhawk Bank's acquisition of First Bankers Trust Company has brought new services and products to customers. The bank's expanded offerings now include a wider range of financial services and investment options.

The acquisition has also increased the bank's assets and deposits, making it a stronger and more stable financial institution.

First Mid Bancshares, Inc. acquired Blackhawk Bancorp in March for $90.3 million, valuing Blackhawk at $101 million to $106 million. This deal is expected to close in the second half of the year.

The acquisition was the result of a long process, with First Mid initially proposing a deal in September that valued Blackhawk at $106 million. However, Blackhawk's board decided to pursue another proposal that valued the bank at $138 million. After further due diligence, the unnamed bank revised its offer, leading Blackhawk's board to end negotiations.

First Mid's proposal was ultimately chosen due to its cultural and strategic alignment with Blackhawk's community-focused approach. The combined company will have a significant presence in northern Illinois and southern Wisconsin, with 82 banking centers across four states.

First Mid Bancshares in Mattoon, Illinois, reentered the chat for the Blackhawk deal in December 2023.

Blackhawk's board initially had more in-depth discussions with another bank, which proposed a deal valuing Blackhawk at $138 million, but revised its offer to include less favorable terms, including a 17% reduction in the deal value.

First Mid's proposal, submitted on September 8, valued Blackhawk at $106 million, which was lower than the other bidder's revised offer.

Blackhawk's board determined there was material execution risk tied to the other proposal, including the risk that the bank would continue to revise its offer, and ended negotiations.

Executives from First Mid and Blackhawk met on December 7 to restart conversations, and two weeks later, First Mid proposed a deal valuing Blackhawk at $101 million to $106 million.

Blackhawk requested and received a change allowing it to have a board seat, and the banks agreed to a letter of intent on December 28.

The merger agreement was signed on March 20 and announced the next day, with the deal expected to close in the second half of 2024.

Blackhawk Bank, which has served the region for more than 140 years, has been acquired by Matoon, Illinois-based First Mid Bank & Trust.

The acquisition is a 100% stock transaction, with First Mid paying $90.3 million, based on the per-share price of $27.13 at market close on Monday.

Blackhawk Bank was established in 1881 in Beloit and expanded into northern Illinois in 1996, and has 10 locations in southern Wisconsin and Illinois.

First Mid will acquire the Beloit-based bank and will offer larger loan limits and a broader array of services, including wealth management, trust, insurance, and agricultural services.

The combined company will be an approximately $8.1 billion financial institution, providing access to a wider range of services for customers.

The merger has been unanimously approved by each company's board of directors and is expected to close in the second half of 2023, subject to regulatory approvals, the green light from Blackhawk's stockholders, and other closing considerations.

First Mid's chairman and CEO, Joe Dively, said the company has a long history of providing excellent service with a community-minded focus that aligns very well with First Mid's philosophy.

Blackhawk's chairman, president, and CEO, Todd James, said customers, employees, and shareholders will benefit from access to First Mid's larger banking organization.

The acquisition is the result of ongoing discussions between First Mid and Blackhawk, which have been partners on many projects over the last several years.

First Mid Bank & Trust is welcoming Blackhawk Bank customers with open arms, mailing out welcome packets in advance of the conversion date to prepare them for upcoming changes.

Blackhawk Bank customers will need to take a few one-time actions, such as logging in to Online Banking and activating new debit cards.

The merger expands First Mid's geographic footprint in northern Illinois and southern Wisconsin markets, adding locations in cities like Belvidere, Machesney Park, and Rockford in Illinois, and Beloit and Janesville in Wisconsin.

First Mid will offer its customers banking convenience through 82 banking centers across Illinois, Missouri, Texas, and Wisconsin.

The acquisition brings First Mid's total assets to approximately $8.1 billion, making it a significant financial institution with a broader range of services, including wealth management and insurance.

Blackhawk Bank has a long history of providing excellent service with a community-minded focus that aligns well with First Mid's philosophy, according to Joe Dively, Chairman and Chief Executive Officer of First Mid.

First Mid will pay $90.3 million for the acquisition, which is based on the per-share price of $27.13 at market close on Monday.

The combined company will offer larger loan limits and a broader array of services, including wealth management, trust, insurance, and agricultural services, according to Todd James, Chairman, President, and CEO of Blackhawk.

First Mid is an $8.0 billion community-focused organization that provides financial services including banking, insurance, wealth management, brokerage, and ag services through a network of locations in Illinois, Missouri, Texas, and Wisconsin, and a loan production office in Indiana.

At First Mid Blackhawk Bank, they support and encourage their employees to pursue their career dreams. Matthew Barnes, a Long-Term Care Professional and Senior Account Executive, has benefited from this support.

They have a blog series for Veterans' Day that highlights employees who are veterans. This series showcases the opportunities available to military veterans at First Mid Blackhawk Bank.

As a Senior Vice President, Commercial Lender in Champaign, Illinois, Patrick Pfeifer has achieved a high level of success at the bank. His role demonstrates the career advancement opportunities available to employees.

First Mid Blackhawk Bank prioritizes employee career development, allowing them to pursue their dreams and achieve their goals. This commitment to employee growth is evident in their support for veterans and other employees.

By highlighting the experiences of employees like Matthew Barnes and Patrick Pfeifer, First Mid Blackhawk Bank shows that career opportunities are available to everyone, regardless of background.