MATTOON -- First Mid-Illinois Bancshares, Inc. announced Tuesday that it has an agreement in place to acquire all of the outstanding shares of the SCB, the holding company for Soy Capital Bank & Trust Co.
First Mid, based in Mattoon, reported in a press release that SCB is a $437 million asset financial services holding company headquartered in Decatur, and operates out of the six key regions of Bloomington, Champaign, Decatur, Kankakee, Peoria and Springfield.
Soy Capital Bank has 10 branch locations and provides full banking services, as well as two additional lines of business that generate significant non-interest income in insurance services and agricultural management services. These lines include the J.L. Hubbard Insurance and Bonds subsidiary.
“The acquisition of SCB strengthens First Mid’s commitment to community banking and further enhances our various lines of business providing an attractive loan and deposit portfolio and a significant increase in non-interest income through services that we are very familiar with,” said First Mid Chairman and CEO Joe Dively. “SCB has a long history of delivering excellent service with a community-minded focus and an unmatched diversity of revenue. All three of First Mid’s lines of business, the bank, insurance and wealth and farm management, align perfectly with SCB’s franchise.”
Following completion of the transaction, First Mid is expected to have approximately $3.8 billion in total assets. In addition, First Mid’s wealth and farm management business will have approximately $3.9 billion in assets under management and the combined insurance business will be approximately $14 million in annual revenue. First Mid’s non-interest income will increase from 25 percent of revenue to approximately 31 percent.
“First Mid is a perfect fit both culturally and strategically for our customers, employees and shareholders," said SCB CEO Bob Smith. "The combination creates a larger organization that will broaden and advance the products and services available to our customers. First Mid’s stock, which trades on NASDAQ, will provide our shareholders with enhanced liquidity and ownership in one of the most respected and best performing banks in the region.”
The press release reported that the transaction has been unanimously approved by each company’s board of directors and is expected to close in late 2018, subject to regulatory approvals, the approval of SCB’s stockholders and the satisfaction of customary closing conditions.