Midland States Bancorp, Inc. (NASDAQ: MSBI) (the “Company” or “Midland”) today announced the signing of a branch purchase and assumption agreement with FNBC Bank & Trust (“FNBC”) whereby Midland will acquire the deposits and certain loans and other assets associated with FNBC’s branches in Mokena and Yorkville, Illinois. Midland will also acquire the Mokena branch location. The transaction is expected to close during the second quarter of 2022, subject to regulatory approval and other customary closing conditions. Prior to or upon closing of the transaction, FNBC intends to close the Yorkville branch, which is approximately one mile from Midland’s existing Yorkville branch. Midland will continue operating the Mokena location as well as its existing Yorkville location following the completion of the transaction.
Under the terms of the purchase and assumption agreement, Midland will acquire approximately $86 million of deposits and approximately $26 million of loans. The deposits being acquired have an overall cost of less than 0.10%, with more than 35% being noninterest-bearing transaction accounts. Immediately following the closing, Midland expects the transaction to be slightly accretive to earnings.
Jeffrey G. Ludwig, President and Chief Executive Officer of Midland States Bancorp, said, “We look forward to welcoming our new customers and delivering the same level of personalized service they have come to expect from FNBC. This transaction will provide additional attractively priced core deposits, while increasing our exposure to faster growing markets in Northern Illinois. 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.”