MORTON, Ill., and PEKIN, Ill., Aug. 8 /PRNewswire/ -- Hometown Community Bancorp, Inc., the holding company for Morton Community Bank, and Progressive Bancorp, Inc. (OTC: PEKS), the holding company for Pekin Savings Bank, announced today that they have entered into a definitive agreement under which Hometown Community Bancorp would acquire Progressive Bancorp in a merger valued at $100.00 per share, or approximately $13.9 million in total. The Board of Directors of each company has unanimously approved the transaction. Due diligence has been completed. In connection with the transaction, Pekin Savings Bank will be merged with and into Morton Community Bank. Gordon D. Honegger, Chairman of Hometown Community Bancorp and Morton Community Bank, stated, "We are very pleased to announce this merger and the deepening of our presence in the Pekin and Peoria market area. We will continue our focus on community banking." Upon completion of the transaction, Morton Community Bank will have approximately $1.25 billion in assets and will have a total of 14 offices, including a new branch office expected to be opened by Pekin Savings Bank in the fourth calendar quarter. E. Glen Rittenhouse, President and Chief Executive Officer of Progressive Bancorp and Pekin Savings Bank, stated, "We look forward to becoming a part of the Morton Community Bank organization. Our customers will benefit from this new relationship with a bank that has always had our respect and shared our outlook. We also are pleased that all of our employees will be offered positions at Morton Community Bank, where they will continue to offer our customers the high level of service they have come to expect." Mr. Rittenhouse will serve as a director and an executive with Morton Community Bank. Customers of Pekin Savings Bank will continue to experience the type and style of community banking services they have become accustomed to, in addition to benefiting from an expanded menu of banking services. Morton Community Bank will maintain all of Pekin Savings Bank's branches in their current locations. Under the terms of the merger agreement, each share of Progressive Bancorp common stock will be converted into the right to receive $82.00 in cash. In addition, the merger agreement states that Progressive Bancorp will pay a special $18.00 per share cash dividend to its stockholders at closing. The $100.00 per share deal price represents 156.5% of Progressive Bancorp's book value per share at June 30, 2005 and 22.2 times Progressive Bancorp's earnings per share for the twelve months ended June 30, 2005. The transaction, which is expected to be completed before the end of the first calendar quarter of 2006, is subject to approval by Progressive Bancorp shareholders and applicable regulatory authorities. Progressive Bancorp is the holding company for Pekin Savings Bank, an Illinois savings bank originally chartered in 1882. Pekin Savings Bank is headquartered in Pekin, Illinois, and operates two full-service banking offices in the Pekin, Illinois market area. At June 30, 2005, Pekin Savings Bank had total assets of $119.7 million, total deposits of $96.7 million and total equity of $10.5 million. Hometown Community Bancorp is the holding company for Morton Community Bank, an Illinois bank. Morton Community Bank is headquartered in Morton, Illinois, and operates 11 full-service banking offices. At June 30, 2005, Morton Community Bank had total assets of $1.14 billion, total deposits of $870.9 million and total equity of $86.4 million.
SOURCE Progressive Bancorp, Inc.