First BancTrust Corporation to Acquire Rantoul First Bank, S.B.
18 Abril 2005 - 12:56PM
PR Newswire (US)
First BancTrust Corporation to Acquire Rantoul First Bank, S.B.
PARIS, Ill., April 18 /PRNewswire-FirstCall/ -- First BancTrust
Corporation (NASDAQ:FBTC) and Rantoul First Bank, S.B. (OTC PK:
RFBK) announced today that they have agreed to an acquisition
transaction in which Rantoul First Bank will be acquired. This
transaction is valued at approximately $4.2 million, all of which
will be paid in cash. First BancTrust is the parent holding company
of First Bank & Trust, S.B., which has community-banking
locations in Paris, Marshall and Savoy, Illinois. Rantoul First
Bank has one banking location in Rantoul, Illinois. Under terms of
the agreement, Rantoul First Bank shareholders are expected to
receive $22.10 per share in cash for each share of its common stock
held. There are 190,961 shares of Rantoul First Bank common stock
outstanding, according to its 2004 annual report. "The addition of
Rantoul First Bank is an excellent fit," said Terry J. Howard,
president and chief executive officer of First BancTrust. "This
acquisition will give us an increased presence in Champaign County,
the most vibrant economic area in east-central Illinois, and will
complement our existing location in Savoy. We have said one of our
goals has been to generate growth through strategic acquisitions
but we would be disciplined in our efforts. The opportunity
provided by Rantoul First Bank meets our criteria," Howard added.
"First BancTrust and Rantoul First Bank have a great deal in
common. Both organizations have a tradition of community banking.
Our respective customer bases are very similar. Both firms have
management with extensive experience in community banking. We
believe that these similarities will allow a smooth and rapid
integration once the transaction is completed. Rantoul First Bank
customers will continue to enjoy the same high quality of service
to which they are accustomed but will also gain access to
additional products and services already available to customers of
First BancTrust. We believe the similarities between our two
organizations also provide opportunities for significant cost
savings," Howard added. Commenting on the transaction, Rantoul
First Bank president and chief executive officer Ronnie R.
Shambaugh said, "This combination represents an opportunity for
Rantoul First Bank shareholders to realize fair value for their
investment and should provide our customers with access to a wider
variety of financial products. We look forward to working closely
with First BancTrust management to integrate our operations with
theirs." Howard said First BancTrust expects to fund the
transaction from external sources. As of December 31, 2004, First
BancTrust had assets of $231 million and Rantoul First Bank had
assets of $31 million. Upon completion of the transaction, First
BancTrust's assets are projected to rise to approximately $264
million after purchase-related accounting adjustments, according to
Howard. The transaction is subject to approval by regulatory
authorities and Rantoul First Bank shareholders, and customary
closing conditions. It is expected to close during the third
quarter of 2005. The acquisition is expected to be minimally
dilutive to First BancTrust's financial results in 2005 and
accretive in 2006 and thereafter. About First BancTrust First
BancTrust Corporation is a holding company that owns all of the
capital stock of First Bank & Trust, S. B., an
Illinois-chartered savings bank that conducts business from its
main office located in Paris, Illinois, and branch banks in
Marshall and Savoy, Illinois. Safe Harbor Statement This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The Company
intends such forward-looking statements to be covered by the safe
harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995 as amended, and is
including this statement for purposes of these safe harbor
provisions. Forward-looking statements, which are based on certain
assumptions and describe future plans, strategies and expectations
of the Company, are generally identifiable by use of the words
"believe," "expect," "intend," "anticipate," "estimate," "project,"
or similar expressions. The Company's ability to predict results or
the actual effect of future plans or strategies is inherently
uncertain. Factors which could have a material adverse affect on
the operations and future prospects of the Company and its
wholly-owned subsidiaries include, but are not limited to, changes
in: interest rates; general economic conditions;
legislative/regulatory provisions; monetary and fiscal policies of
the U.S. Government, including policies of the U.S. Treasury and
the Federal Reserve Board; the quality of composition of the loan
or investment portfolios; demand for loan products; deposit flows;
competition; demand for financial services in the Company's market
area; and accounting principles, policies, and guidelines. These
risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed
on such statements. Further information concerning the Company and
its business, including additional factors that could materially
affect the Company's financial results, is included in the
Company's filings with the Securities and Exchange Commission.
DATASOURCE: First BancTrust Corporation CONTACT: Terry J. Howard,
President and Chief Executive Officer, of First BancTrust,
+1-217-465-0260, Michael Arneth or Brien Gately of The Investor
Relations Company, +1-847-296-4200
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