First Mid Bancshares has agreed to acquire Missouri-based Evergreen Bancshares in a cash-and-stock deal expected to close in the first quarter of 2027. Evergreen’s bank, American Bank of Freedom, had about $932 million in assets at Sept. 30, 2026; after the acquisition, it is expected to join First Mid’s banking subsidiary.
Key details
- What Evergreen shareholders would receive: For each eligible Evergreen share, holders would get $5.20 in cash plus 0.4081 First Mid shares. Fractional First Mid shares would be paid in cash.
- Expected total consideration: First Mid expects to issue about 1.11 million shares and pay about $14.1 million in cash at closing. The final consideration may be adjusted if Evergreen’s closing net worth falls below the agreed threshold.
- Net-worth adjustment: If Evergreen’s adjusted shareholders’ equity at closing is below $69.33 million, the consideration would be reduced dollar-for-dollar by the shortfall. The reduction would first come out of the cash payment; if the shortfall exceeds the total cash consideration, the stock exchange ratio would also be reduced.
- Banking operations: American Bank is expected to merge into First Mid Bank & Trust after the parent-company deal closes. American Bank’s offices would then operate as branches of First Mid Bank.
- American Bank’s scale: At Sept. 30, 2026, it had approximately $932 million in assets, $712 million in loans and $727 million in deposits.
- Approvals and timing: The transaction requires regulatory approval and approval by Evergreen shareholders, along with other customary closing conditions. Certain Evergreen directors and officers have agreed to vote their shares in favor of the deal.
- Interim restrictions: Until closing, Evergreen and American Bank face limits on certain actions outside the ordinary course of business, including some compensation changes, asset and liability transactions, acquisitions and pursuit of competing offers.
Plain-English implications
The deal would give Evergreen shareholders a combination of cash and First Mid stock, making them shareholders in the larger company after closing. The bank-level merger is planned for a later date, so American Bank’s offices would become part of First Mid Bank after the acquisition is completed.