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First Mid Bancshares has agreed to acquire Evergreen Bancshares, parent of American Bank of Freedom, in a cash-and-stock transaction valued at approximately $70.7 million. The agreement was signed October 28 and announced October 29.
The acquisition would extend First Mid’s regional banking network into additional markets in Missouri, Illinois and Indiana while adding nearly $1 billion in banking assets. It remains subject to regulatory and Evergreen shareholder approvals.
What First Mid is buying
American Bank of Freedom, headquartered in Wellsville, Missouri, operates 10 banking centers serving the St. Louis area and I-70 corridor, Rochester, Illinois, and Westfield, Indiana. It also maintains a loan production office in the Denver area.
As of September 30, the bank reported approximately $932 million in assets, $712 million in loans and $727 million in deposits, according to the companies’ joint announcement.
Evergreen shareholders would receive 0.4081 shares of First Mid common stock and $5.20 in cash for each Evergreen share. The approximately $70.7 million valuation uses First Mid’s October 27 closing stock price of $51.01 and may change under the agreement’s terms.
A push for greater scale
First Mid, which reported approximately $9.4 billion in assets before the transaction, said the deal is part of its preparation to operate above $10 billion in assets. Management estimates the combination could increase earnings per share by about 5% in 2028, although that projection depends on assumptions about integration and savings.
The company anticipates savings equal to roughly 33% of Evergreen’s noninterest expense, plus about $900,000 annually before taxes from branch consolidation. These are management forecasts, not realized results.
For borrowers and businesses in the affected markets, the proposed merger could eventually mean access to a larger lending platform and broader banking services. The companies have not announced specific changes to mortgage products, loan pricing or underwriting.
Closing remains subject to approvals
Both boards unanimously approved the agreement. The companies expect the holding-company transaction to close in the first quarter of 2027, with the bank merger and systems conversion following in the second quarter. Regulatory review, Evergreen shareholder approval and other closing conditions remain outstanding.
The transaction is described in First Mid’s October 29 Form 8-K, which identifies October 28 as the earliest event reported.
Simple Content Summary
First Mid Bancshares agreed to buy Evergreen Bancshares, parent of American Bank of Freedom, for approximately $70.7 million. The pending transaction adds 10 banking centers and approximately $932 million in assets, expanding First Mid’s regional footprint. Closing is expected in early 2027, subject to approvals.
