Dieterich Bank of Effingham, Illinois, announced today that it has signed a purchase and assumption agreement with First Bank, Creve Coeur, Missouri, to acquire five of First Bank’s Illinois branch locations with deposits of approximately $221 million. The branch offices are located in Breese, Chester, Columbia, Red Bud and Waterloo, Illinois. Dieterich Bank has also agreed to purchase the fixed assets and some of the loans related to these purchased branches. The transaction is scheduled to close in the third quarter of this year, subject to regulatory approval and the satisfaction of customary closing conditions.
"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 operating as 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. Dieterich Bank is committed to the community banking culture, quality service, and supporting our local businesses and residents. This expansion aligns with the bank’s strategic initiative to seek growth opportunities, expand its footprint, and enhance shareholder value.”
After the purchase of the branches, the Dieterich Bank franchise will increase from eight to thirteen branch locations (fourteen including the new Edwardsville branch opening in March). The bank is also planning to open a loan production office in South County St. Louis in the second quarter. This branch purchase transaction will increase Dieterich Bank’s assets from $786 million at the end of January 2020 to approximately $1 billion in assets at closing.
Dieterich Bank was advised in this transaction by Keefe, Bruyette & Woods (KBW) as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg LLP as legal counsel.
About Dieterich Bank
Dieterich Bank was chartered in 1909. It currently has eight branch locations and a corporate office located in Effingham, Illinois. The bank had assets of $786 million and 132 employees as of January 31, 2020.