First Mid-Illinois to acquire 12 offices from Old National

First Mid-Illinois to acquire 12 offices from Old National

MATTOON — First Mid-Illinois Bank & Trust will expand its footprint into southern Illinois with the acquisition of 12 Old National Bank branches.

The Mattoon-based bank announced late last week that it will acquire two offices each in Carbondale and Harrisburg and one office each in Murphysboro, Carterville, Marion, Mount Vernon, Lawrenceville, Mount Carmel, Carmi and DeSoto.

Until now, Interstate 70 had marked the southern boundary of First Mid-Illinois territory, with its southernmost offices located in Effingham, Altamont, Highland and Maryville. The remainder of its offices were in central Illinois.

Old National Bank’s parent company, Evansville, Ind.-based Old National Bancorp, said it was selling the 12 offices as part of “ongoing efficiency improvements.”

Old National also announced it was selling offices in the Indiana towns of Batesville, Richmond, Brownstown and Portland and in Union City, Ohio, to MainSource Bank and closing or consolidating 19 other offices in Indiana, Michigan and Kentucky.

“The branch sales are subject to regulatory approval and other terms and conditions, and combined, include approximately $620 million in deposits and approximately $200 million in loans,” Old National said in a report to the Securities & Exchange Commission.

The bank said it expects the transactions to close in the third quarter of this year. Costs associated with the closed and consolidated branches are expected to be offset by gains realized on the sale of the southern Illinois and eastern Indiana branches, the company said.

Old National will retain its offices in Danville and Marshall, leaving the company with a much smaller footprint in Illinois.

The First Mid-Illinois transaction involves $502 million of deposits and $160 million of performing loans, according to First Mid-Illinois Bancshares Chairman and Chief Executive Officer Joe Dively.

“These communities fit well geographically and the services offered align well with our product lines of banking, insurance, trust and wealth management,” Dively said.

“This acquisition will provide a solid foundation for future growth and profitability and deliver long-term shareholder value,” he added.

First Mid-Illinois offices in East Central Illinois include those in Champaign, Urbana, Mattoon, Charleston, Mahomet, Mansfield, Monticello, Tuscola, Arcola, Sullivan, Weldon and Neoga. With the acquisition, the assets of First Mid-Illinois Bancshares are expected to top $2 billion and the number of its offices would grow from 35 to 47.

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