Dieterich Bank of Effingham has signed a purchase and assumption agreement to acquire five of First Bank's Illinois branch locations with deposits of approximately $221 million.
First Bank is headquartered in Creve Coeur, Missouri. The branch offices being acquired are in Breese, Chester, Columbia, Red Bud and Waterloo.
Dieterich Bank has also agreed to buy the fixed assets and some of the loans related to these purchased branches. The transaction is scheduled to close in the third quarter of 2020, subject to regulatory approval and the satisfaction of customary closing conditions.
This branch purchase transaction will increase Dieterich Bank's assets from $786 million at the end of January 2020 to approximately $1 billion at closing.
It also will grow the Dieterich Bank franchise from eight to 13 branch locations (the 14th will be the new Edwardsville branch opening in March).
The bank also plans to open a loan production office in South County St. Louis in the second quarter.
"Dieterich Bank already serves many customers in these markets with our existing locations. We look forward to welcoming these new customers, employees, and communities into the Dieterich Bank family," said Chuck Deters, CEO of Dieterich Bank.
Dieterich Bank has been a community bank since 1909.
"These communities are very similar to the ones in which we operate today, and that makes this a great fit for our organization," Deters said.
Dieterich Bank was advised in this transaction by Keefe, Bruyette & Woods as financial adviser and Barack Ferrazzano Kirschbaum & Nagelberg LLP as legal counsel.
• For more information, visit Dieterich Bank on the web at www.dieterichbank.com.