MENDOTA — In a Friday news release, the board of directors of Tri County Financial Group Inc., the holding company for First State Bank, and the board of directors of H.F. Gehant Bancorp Inc., the holding company for H.F. Gehant Banking Co., announced the companies have signed a definitive agreement outlining the terms of the acquisition of H.F. Gehant Banking Co. by Tri-County Financial Group through the merger of H.F. Gehant Bancorp with Tri-County Financial Group.
Subject to the parties receiving regulatory and shareholder approval by the shareholders of H.F. Gehant Bancorp and satisfying certain other closing contingencies set forth in the definitive agreement, the parties anticipate the consolidation will be completed in either the first or early second quarter of 2020.
As part of the agreement, each party’s banking subsidiaries (H.F. Gehant Banking Co. and First State Bank) will be merged and after such merger will operate under the First State Bank name.
The release stated this consolidation will bring together two long-standing Illinois community banking institutions.
H.F. Gehant Banking Co. has approximately $59 million in total assets and has locations in West Brooklyn and Triumph.
First State Bank has approximately $1.137 billion in total assets and has locations in Mendota, Batavia, Bloomington, Geneva, LaMoille, McNabb, North Aurora, Ottawa, Peru, Princeton, Rochelle, Shabbona, St. Charles, Streator, Sycamore and Waterman.
Tim McConville is Tri-County Financial Group's president and CEO.
“We are excited for the opportunity to partner with an organization that is committed to true community banking," McConville stated.
"The combined solid core deposit base allows us to take advantage of asset growth opportunities in both the acquired markets and our broader market areas, and we look forward to the opportunities this transaction creates to enhance shareholder value,” McConville stated.
Bill Gehant, president and CEO of H.F. Gehant Bancorp, Inc., commented: “We are very pleased to be joining with a larger community bank that is committed to delivering a high level of customer service. We believe that this transaction will be beneficial to our shareholders, customers and employees, and it will allow us to offer a broader array of banking services to our customers.”
Tri-County Financial Group Inc. was advised by the investment banking firm of Raymond James and Associates Inc. and the law firm of Howard and Howard Attorneys PLLC.
H.F. Gehant Bancorp Inc. was advised by the law firm of Barack Ferrazzano Kirschbaum and Nagelberg, LLP.