The parent company of Hickory Point Bank and Trust is being acquired by an Indiana-based bank in a $111 million deal.
First Illinois Corp., the Decatur-based holding company for Hickory Point, will be merging “with and into” First Financial Corp., the holding company for First Financial Bank, according to an announcement from the companies. Hickory Point operates eight bank branches in central Illinois, including a Springfield location at 3131 W. Wabash Ave.
It will be business as usual at the Springfield branch for the foreseeable future, according to Jeff Raes, executive vice president and Springfield market manager for Hickory Point Bank, who emphasized that integration planning for the merger is still in the beginning stages. The deal is expected to close in the fourth quarter, and at that time, the Hickory Point branches will change to the First Financial Bank name.
“We really believe that the merger will position both entities well going forward,” Raes said. “Banking is continually changing, and it requires scale to invest in things like technology and cyber security and regulatory compliance to ensure the highest level of customer experience. Partnering with First Financial provides Hickory Point Bank with that scale.”
The Springfield Hickory Point branch has 12 employees and total deposits of about $80 million. Raes said he believes the merger with First Financial is a good cultural fit for Hickory Point.
“Both in terms of how we deal with customers and how we invest in the community,” he said.
Terre Haute, Indiana-based First Financial operates 87 banking centers in Illinois, Indiana, Georgia, Kentucky and Tennessee. Norman Lowery, president and CEO of First Financial, said the Hickory Point merger will help the bank expand its footprint in Illinois.
“Hickory Point Bank brings an attractive core deposit franchise and strong balance sheet liquidity that will enhance our funding profile and support continued growth,” Lowery said in a statement.
Hickory Point had $717 million in total assets, $438 million in total loans, and $627 million in total deposits as of June 30. The deal will boost First Financial’s total assets to $6.9 billion, its loans to $4.9 billion and total deposits to $5.5 billion.