Amcore Bank, a wholly-owned subsidiary of Illinois-based Amcore Financial, has reached a definitive agreement with Illinois-based Midland States Bank, to sell 12 branches and two stand-alone drive-ups. The branches are located in Dixon, Freeport, Mendota, Oregon, Peru, Princeton, Rock Falls and Sterling.
The transaction includes approximately $480m in loans, $540m in deposits and sweep accounts, up to $400m in trust and brokerage account relationships, as well as the branch facilities, related fixed assets and leases. In connection with the sale, Amcore will receive a 1.5% deposit premium and a $1.5m trust account premium.
Jeff Lovett, president of Amcore market and Sandi Hall, regional retail sales manager, will transition in their roles to Midland States Bank and will continue to serve customers in this region.
William McManaman, chairman and CEO of Amcore, said: “The sale of these branches, when completed, demonstrate that our rebuilding efforts continue to move forward and remain on track. As the result of those combined actions to improve capital, we would expect that the bank will no longer be deemed significantly undercapitalized for regulatory purposes at the end of 2009.
“Assuming economic conditions in our markets stabilize, and that the transaction with Midland States Bank closes at the end of the first quarter 2010 and its benefits are fully realized, we expect that the bank would be adequately capitalized and approaching well-capitalized.
“We believe Mr Lovett’s and Ms Hall’s expertise and knowledge of the region are a valuable asset for Midland States Bank and their customers. Midland States Bank has a strong community banking philosophy and we believe it will continue to serve customers with the high quality service that Amcore proudly provided.”
Leon Holschbach, CEO of Midland States Bank, said: “We are excited to be establishing a banking presence in Northern Illinois markets that I’ve worked in and have intimate knowledge of. These are good, strong community banks with a deep seated commitment to providing financial strength and stability to their communities in order for them to thrive and prosper.”
However, the transaction, which is subject to regulatory and other customary closing conditions, is expected to close in first quarter 2010.
