First Mid to Buy Evergreen Bancshares in $70.7 Million Mixed Deal
The Mattoon, Ill., bank said the combination extends its St. Louis and I-70 corridor footprint, adds Rochester, Ill., and puts a full-service franchise in greater Indianapolis.
First Mid Bancshares, Inc. (FMBH) agreed to acquire Evergreen Bancshares, Inc. in a mixed cash-and-stock transaction valued at approximately $70.7 million, a deal the Mattoon, Ill., community-bank holding company said will deepen its St. Louis and I-70 corridor presence, extend Illinois operations through Rochester, and establish a full-service banking franchise in the greater Indianapolis market.
Under the definitive agreement, Evergreen shareholders will receive 0.4081 shares of First Mid common stock plus $5.20 in cash for each share of Evergreen common stock. The companies expect the transaction to close in the first quarter of 2027, subject to regulatory approvals, a vote of Evergreen’s shareholders, and customary closing conditions.
President and Chief Executive Officer Matthew Smith said the combination would expand First Mid’s footprint and help it build scale and prepare for growth above $10 billion in assets. “We are excited to welcome American Bank of Freedom’s employees, customers and shareholders to First Mid,” Smith said. “We have known the organization and its leadership for many years, and we are honored to have been selected as their strategic partner. This transaction strengthens our presence in St. Louis and along the I-70 corridor, expands our Illinois franchise through Rochester, and establishes a full-service banking presence in the greater Indianapolis market.”
The Indianapolis angle is the newest piece of that map. First Mid already operates a loan production office in the greater Indianapolis area, and the company has described itself as a community-focused organization with locations throughout Illinois, Missouri, Texas, and Wisconsin. The acquisition would add American Bank of Freedom’s existing banking center in Westfield, Indiana, to First Mid’s Indianapolis-area presence.
The mix of stock and cash sits beside a year of dealmaking that has already reshaped First Mid’s footprint. In October 2025 the company announced a 100% stock purchase of Two Rivers Financial Group, Inc., valued at approximately $94.1 million, to expand into Iowa markets. That deal closed in March 2026, adding Two Rivers Bank & Trust’s Iowa branches and lifting First Mid to about $9.1 billion in total assets at the time of completion.
Two Rivers’ bank merger into First Mid Bank & Trust was completed in the second quarter of 2026. At that point First Mid reported total loans of $6.93 billion and total deposits of $7.57 billion, with tangible book value of $31.15 a share and a tax-equivalent net interest margin of 3.79%. Smith, then commenting on the Two Rivers integration, said the employees and customers of Two Rivers “have embraced us like no other.”
The Evergreen combination is smaller in dollar terms than the Two Rivers purchase and is structured with a cash component rather than an all-stock exchange. Closing remains contingent on regulators, Evergreen shareholders, and customary conditions, with the companies pointing to the first quarter of 2027 as the expected window.
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