First Mid Bancshares has agreed to acquire all of the outstanding shares of Evergreen Bancshares, the parent company of American Bank of Freedom, in a stock and cash transaction. Based on First Mid's closing share price of $51.01 on 27 October 2026, the aggregate consideration is approximately $70.7 million, subject to certain conditions and adjustments, the companies said.
Evergreen shareholders will receive 0.4081 First Mid shares plus $5.20 in cash for each Evergreen share, a mix the companies expect to be about 80% stock and 20% cash based on First Mid's share price at announcement. The companies said the deal strengthens First Mid's presence in St. Louis and along the I-70 corridor, extends its Illinois franchise through Rochester and gives it a full-service banking presence in the greater Indianapolis market.
TWO OLD COMMUNITY FRANCHISES
The deal comes as consolidation continues among US community banks. According to the TGB market profile, the US banking system comprised 4,238 FDIC-insured commercial banks and savings institutions at end-June 2026, down from 4,421 a year earlier as mergers continued to thin the community-bank tier. Community banks still account for 90% of institutions, while the 18 institutions with assets above $250 billion held 64% of industry assets.
Founded in 1880, American Bank of Freedom is headquartered in Wellsville, Missouri. It operates 10 banking centres, including locations throughout the St. Louis metropolitan area and the I-70 corridor and centres in Rochester, Illinois and Westfield, Indiana, as well as a loan production office in the Denver, Colorado area. At 30 September 2026, it had approximately $932 million in total assets, $712 million in loans and $727 million in deposits.
First Mid, whose team has served customers and communities for more than 160 years, describes itself as a $9.4 billion community-focused organisation with locations throughout Illinois, Iowa, Missouri, Texas and Wisconsin. It already runs a loan production office in the greater Indianapolis area.
CROSSING THE $10 BILLION LINE
First Mid estimates that the transaction will be approximately 5.0% accretive to earnings per share in 2028, including the anticipated impact of crossing $10 billion in assets. It expects tangible book value per share dilution of approximately 0.5%, with an earnback period of approximately 0.5 years, and cost savings of approximately 33% of Evergreen's noninterest expense, plus approximately $0.9 million of annual pre-tax savings from branch consolidation.
Matthew Smith, President and Chief Executive Officer of First Mid, called the deal an important step as the bank builds scale and prepares for growth above $10 billion in assets. First Mid said it believes the additional earnings and synergies more than offset the incremental financial impact of operating above the $10 billion threshold. First Mid expects a pro forma CET1 ratio of approximately 13.6% after the transaction.
Timothy Nash, President and Chief Executive Officer of American Bank of Freedom, said the bank was pleased to partner with an organisation that shares its commitment to community banking and strong customer relationships. Following completion, American Bank of Freedom customers will have access to First Mid's wealth management, brokerage, agricultural services, treasury management and insurance.
THE TGB VIEW
The TGB market profile counts 4,238 FDIC-insured US commercial banks and savings institutions at end-June 2026, down from 4,421 a year earlier, and this deal fits that pattern: a community bank with about $932 million in total assets at 30 September 2026 joining a $9.4 billion buyer. For First Mid the deal comes as it prepares for growth above $10 billion in assets, and it says it believes the earnings and synergies more than offset the cost of operating above that threshold. The dates to watch are the expected close in the first quarter of 2027, subject to regulatory approvals and Evergreen's shareholders, and the bank merger and systems conversion in the second quarter of 2027.