Magazine article American Banker

Banc One to Acquire Northern Illinois Bank

Magazine article American Banker

Banc One to Acquire Northern Illinois Bank

Article excerpt

Furthering a push into Illinois, Banc One Corp. on Wednesday agreed to buy Rockford-based First Community Bancorp. for about $120 million in stock.

First Community, with $797 million in assets, operates in northern Illinois. Its lead bank is First National Bank and Trust Co., Rockford.

The First Community acquisition, combined with other pending deals, would give Banc One an Illinois franchise with $4.3 billion in assets, making it the state's eighth largest.

And the acquisitive company doesn't plan to stop there: "We want to become a bigger player in Illinois," said Banc One spokesman John A. Russell.

1.85 Times Book Value

The exchange has a minimum value of $29.25 per First Community share, representing a premium of at least 1.76 times book value. That is in line with what Banc One is paying for Key Centurion Corp., Charleston, S.C., and lower than the 2.3 times book the Ohio company is paying for Valley National Corp., Phoenix.

Banc One's common stock was trading Wednesday afternoon at $43.875, down 37.5 cents. First Community stock shot up $8.75, to $27.25, an increase of 47% from Tuesday's close. Depending on what happens to Banc One trading values, the deal could be worth as much as $32 per share.

First Community is a solid banking company that nevertheless has been posting average results by Midwest standards. The company's $4.1 million of earnings during the first half of 1992 equaled annualized returns of 1.07% on average assets and 12.58% on average equity. …

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