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First Mid seeks SCB
Posted on Wednesday, 13 June 2018 13:50
First Mid-Illinois Bancshares is buying SCB Bancorp in a USD 70.40 million deal that diversifies the acquisitive lender’s revenue and deepens an existing presence in target markets like Decatur, Peoria and Champaign-Urbana.

The cash and stock offer equates to a price to tangible book value ratio of 185.0 per cent and a multiple of 15.1 times price to earnings per share for the last 12 months.

Decatur-headquartered SCB is a holding company for Soy Capital Bank and Trust, which in turn fully owns JL Hubbard Insurance and Bonds.

The group has ten branch locations across six key regions in the state, including Bloomington, Champaign, Decatur, Kankakee, Peoria and Springfield.

As of 31st March 2018, it had total assets of USD 437.00 million, deposits of USD 319.00 million, loans of USD 256.00 million and assets under management of USD 2.40 billion.

Along with full banking options, SCB also offers two additional lines of business that generate significant non-interest income and which, together, account for 58.0 per cent of the bank’s total revenue.

JL Hubbard is touted as the largest community bank-owned insurance company – providing commercial and personal cover, employee benefits packages, and surety bonds - in Illinois with gross revenues of USD 10.10 million in 2017.

The agricultural division is flaunted as the biggest farm manager in Illinois with 248,000 acres under management across 11 states, though it also offers farmland brokerage and appraisal services.

One the deal completes in the fourth quarter of 2018, First Mid expects to have total assets of USD 3.80 billion.

Furthermore, the organisation’s wealth and farm management operations are forecast to have USD 3.90 billion in assets under management and the combined insurance business is on course to book annual revenue of USD 14.00 million.

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