Midland States expanding with deposits, loan purchase

Midland States Bancorp in Effingham, Ill., has agreed to buy deposits and loans from FNBC Bank & Trust in La Grange, Ill. 

The $7.1 billion-asset company said in press release Wednesday that it will buy $86 million of deposits and $26 million of loans tied to branches in Mokena and Yorkville, Ill. Midland States will also buy the Mokena branch. 

The transaction is expected to close in the second quarter. 

The deposits being acquired have an overall cost of less than 0.10%, with more than a third being noninterest bearing. 

Midland, which did not disclose the price it will pay, said it expects the transaction to be slightly accretive to earnings. 

“This transaction will provide additional attractively priced core deposits, while increasing our exposure to faster growing markets in northern Illinois,” Jeffrey Ludwig, Midland States’ president and CEO, said in the release. 

“With our expansion into the Mokena market, we will also improve our positioning to capitalize on new talent and client acquisition opportunities created by bank merger activity in the greater Chicagoland area,” Ludwig added.