First Mid to merge with Evergreen Bancshares in $70.7 million stock and cash deal

First Mid Bancshares and Evergreen Bancshares, parent of American Bank of Freedom, signed a definitive agreement dated October 28, 2026, under which Evergreen will merge with First Mid. Evergreen shareholders will receive 0.4081 First Mid shares plus $5.20 in cash per share, for aggregate consideration of about $70.7 million based on First Mid's October 27 closing price of $51.01. The mix is expected to be about 80% stock and 20% cash.

American Bank of Freedom, founded in 1880, is headquartered in Wellsville, Missouri, and operates 10 banking centers in the St. Louis area and along the I-70 corridor, plus locations in Rochester, Illinois and Westfield, Indiana. It had about $932 million in total assets, $712 million in loans and $727 million in deposits as of September 30, 2026. The deal is expected to be about 5.0% accretive to 2028 earnings per share, and First Mid expects cost savings of about 33% of Evergreen's noninterest expense.

The transaction was unanimously approved by both boards and is expected to close in the first quarter of 2027, subject to regulatory and Evergreen shareholder approvals, with the bank merger and systems conversion expected in the second quarter of 2027. Stephens Inc. advised First Mid, with ArentFox Schiff LLP as legal adviser. Keefe, Bruyette & Woods advised Evergreen, with Husch Blackwell as legal adviser.