Joliet, Ill.-based NuMark CU agreed to acquire all of the assets and liabilities of Earlville, Ill.-based Pioneer State Bank, a wholly owned subsidiary of NBE Bancshares Inc., in an all-cash transaction.

The acquisition is expected to close in the fourth quarter.

S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Jun. 1, 2021, and Jun. 1, 2022, averaged 147.48% of book and 148.92% of tangible book and had a median of 15.74x last-12-months earnings, on an aggregate basis.

Upon the completion of the deal, Pioneer State Bank will liquidate and distribute its remaining assets to NBE Bancshares and then the parent company will dissolve and distribute its remaining assets to its stockholders.

Based on Market Intelligence data, with the completion of the deal, NuMark CU will enter Lee County, Ill., with three branches to be ranked fifth with a 6.76% share of approximately $894.61 million in total market deposits and will enter LaSalle County, Ill., with one branch to be ranked No. 18 with a 1.19% share of approximately $4.04 billion in total market deposits.

As a result of the acquisition, NuMark CU will have $759 million in assets and increase its footprint beyond the Chicagoland area into central Illinois with 13 branches.

The acquisition has been approved by the boards of both NuMark CU and Pioneer State Bank, but needs regulatory and Pioneer State Bank shareholders' approvals.

McQueen Financial Advisors was the financial adviser and Luse Gorman PC was the legal adviser to NuMark CU. Pioneer State Bank was advised by Olsen Palmer LLC's investment banking firm, while Godfrey & Khan SC was the legal adviser.

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