Beloit-Based Blackhawk Bank Acquired By First Mid Bank & Trust
March 21, 2023 at 2:50 pm Kevin Haas
Blackhawk Bank, which has 10 locations including this one at 3101 11th St. in Rockford, was acquired by First Mid Bank & Trust on Tuesday, March 21, 2023. (Photo by Kevin Haas/Rock River Current)
By Kevin Haas
Rock River Current
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BELOIT, Wis. — Blackhawk Bank, which has served the region for more than 140 years, has been acquired by Matoon, Illinois-based First Mid Bank & Trust.
The companies announced the agreement to merge on Tuesday, saying First Mid will acquire the Beloit-based bank with a 100% stock transaction. First Mid will pay $90.3 million, which is based on the per-share price of $27.13 at market close on Monday, for the acquisition. Blackhawk shareholders will receive 1.15 shares of FMBH common stock for each share of BHWB.
Blackhawk, which was established in 1881 in Beloit and expanded into northern Illinois in 1996, has 10 locations in southern Wisconsin and Illinois.
“Blackhawk has a long history of providing excellent service with a community-minded focus that aligns very well with First Mid’s philosophy,” Joe Dively, chairman and CEO of First Mid, said in a news release.
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Blackhawk has the fifth largest share among banks in the Rockford market, capturing about 9% of the market, according to Federal Deposit Insurance Corporation data. It has approximately $1.32 billion in total assets, $782 million in loans and $1.19 billion in deposits.
Dively said that recent volatility for banks, which came to a head with the collapse of Silicon Valley Bank earlier this month, didn’t play a role in the merger. Discussions between First Mid and Blackhawk have been ongoing for years.
“We have partnered with Blackhawk on many projects over the last several years and could not be more confident in the cultural and strategic alignment,” Dively said. “The combined company will be an approximately $8.1 billion financial institution with significant wealth management and insurance services. We look forward to welcoming Blackhawk’s shareholders, employees and customers to the First Mid team.”
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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.
“This has been a very long process culminating in today’s announcement, which has reinforced our belief in the strength of these two organizations and the opportunities it will provide once combined,” Todd James, chairman, president and CEO of Blackhawk, said in a news release.
James said customers, employees and shareholders will benefit from access to First Mid’s larger banking organization. He said it will offer larger loan limits and a broader array of services, including wealth management, trust, insurance and agricultural services.
“We are excited to join forces with First Mid, a like-minded partner that shares our commitment to supporting the communities we serve and building strong long-term relationships with customers,” James said.
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas .
Above is from: Beloit-based Blackhawk Bank acquired by First Mid Bank & Trust | Rock River Current
