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First Mid Bancshares, Inc. Announces Acquisition of Evergreen Bancshares, Inc.

FMBH
  • First Mid Bancshares, Inc. & Evergreen Bancshares, Inc. (parent of American Bank of Freedom) executed a definitive agreement on October 28, 2026, for Evergreen to merge with First Mid in a stock & cash transaction.
  • The merger will strengthen First Mid's presence in St. Louis, the I-70 corridor, Rochester, Illinois, & the greater Indianapolis market.
  • American Bank of Freedom operates 10 banking centers & a loan production office in Denver, with approximately $932 million in assets as of September 30, 2026.
  • First Mid will acquire 100% of Evergreen shares, with shareholders receiving 0.4081 shares of FMBH stock plus $5.20 cash per share.
  • The aggregate consideration is approximately $70.7 million, structured as roughly 80% stock & 20% cash based on First Mid's stock price at announcement.
  • The transaction is estimated to be 5.0% accretive to earnings per share in 2028, with an expected tangible book value per share dilution of 0.5% & an earnback period of 0.5 years.
  • First Mid anticipates cost savings equal to 33% of Evergreen's noninterest expense, plus $0.9 million in annual pre-tax savings from branch consolidation.
  • The pro forma Common Equity Tier 1 (CET1) ratio following the transaction is expected to be approximately 13.6%.
  • Following the merger, customers will gain access to First Mid's expanded services, including wealth management, brokerage, agricultural services, treasury management, & insurance.
  • Both boards of directors unanimously approved the transaction, which is expected to close in the first quarter of 2027, subject to regulatory & shareholder approvals.
  • The companies plan to complete the bank merger & systems conversion in the second quarter of 2027.
  • Stephens Inc. & ArentFox Schiff LLP served as advisors to First Mid, while Keefe, Bruyette & Woods & Husch Blackwell served as advisors to Evergreen.
  • First Mid Bancshares, Inc. is a $9.4 billion organization with operations across Illinois, Iowa, Missouri, Texas, & Wisconsin, plus a loan production office in Indianapolis.
  • Evergreen Bancshares, Inc. is the parent of American Bank of Freedom, a community bank founded in 1880 with locations in Missouri, Illinois, & Indiana.