CNB Bank Shares, Inc, and Jacksonville Bancorp, Inc. have jointly announced that they have entered into a definitive merger agreement whereby Jacksonville Bancorp will merge with and into CNB Shares.
Jacksonville Savings Bank, the wholly-owned subsidiary of Jacksonville Bancorp, has six locations, including banks that operate under the names First Midwest in Virden and Litchfield Community Savings in Litchfield, Illinois. Headquartered in Jacksonville, Jacksonville Savings Bank has approximately $337 million in total assets.
CNB Bank & Trust, the wholly-owned subsidiary of CNB Shares, has 13 locations throughout central and southern Illinois, plus a branch in Clayton, Missouri. CNB Bank & Trust is headquartered in Carlinville, Illinois with approximately $924 million in total assets.
With approximately $1.25 billion in pro forma assets, the combined bank will continue to operate all branches after closing. Under the terms of the merger agreement, shareholders of Jacksonville Bancorp will receive $33.70 in cash for each share of common stock. The transaction has an aggregate deal value of approximately $61.6 million.
Jacksonville Bancorp board chairman Andy Applebee said, “Our two banks are very complimentary. We are confident CNB will continue our community bank tradition while capitalizing on the benefits that come with being a larger bank.”
Following the merger, Applebee will remain in an advisory capacity and Rich Foss, the current president and CEO of Jacksonville Savings Bank, will serve as a director of the board of CNB Bank & Trust.
Shawn Davis, CNB Bank & Trust president, said, “This merger will not only be a good fit geographically for CNB, but also culturally, as Jacksonville Savings Bank has diligently committed resources to staff training in the areas of quality service and product development.”
The acquisition is expected to close in the second quarter of 2018 and is subject to Jacksonville Bancorp Shareholder approval, regulatory approval, and other conditions as set forth in the merger agreement. Upon completion of the holding company merger, the two banks will be merged in the fourth quarter of 2018 or first quarter of 2019.