BHWB - First Mid Bancshares acquires Blackhawk Bancorp for $90.3M

2023-03-21 08:39:59 ET

• First Mid Bancshares ( NASDAQ: FMBH ) and Blackhawk Bancorp ( OTCQX:BHWB ) executed a definitive agreement wherein the latter will merge with former in a 100% stock transaction.
• Blackhawk, parent company of Blackhawk Bank, operating 10 branches in Wisconsin and Illinois with ~$1.32B in total assets, $782M in loans and $1.19B in deposits, as of Dec.31, 2022.
• Under agreement terms, First Mid will acquire 100% of the outstanding shares of Blackhawk and Blackhawk shareholders will receive 1.15 shares of FMBH common stock for each share of BHWB common stock.
• Based on First Mid's price per share at closing on Mar. 20, 2023, consideration to be paid by First Mid is ~$90.3M.
• The transaction, expected to close in 2H23, is estimated to be ~22% accretive to EPS in 2024; estimated tangible BV/share dilution to First Mid is expected to be earned back in 1.9 years under the crossover method.
• First Mid expects to achieve cost savings of ~31% of Blackhawk’s noninterest expense.
• Blackhawk's available for sale securities portfolio of ~$444M at Dec. 31, 2022 will be marked to fair value through purchase accounting on transaction closure.

For further details see: