Midland States Bancorp has completed its acquisition of HomeStar Financial Group, the parent company of HomeStar Bank and Financial Services.
As of March 31, 2019, HomeStar Bank had approximately $381.4 million in assets, $216.6 million in loans and $339.3 million in deposits.
Jeff Ludwig, President and Chief Executive Officer of Midland, commented, “We are excited to welcome HomeStar’s customers, employees and shareholders to Midland. We look forward to offering HomeStar customers a broader selection of financial products and services, while maintaining the same exceptional service level that they have come to expect.
“With the financial strength that Midland provides, we believe we can expand upon the leading position that we now have in the Kankakee, IL market, capitalize on the synergies of this combination, and create strong value for our new and existing shareholders.”
Bill Smith, Chief Executive Officer of HomeStar, said, “We have worked closely with the Midland team over the past few months to ensure a smooth transition for our customers and employees. We are confident that the strength of the combined organization will provide a superior banking experience for our customers in the years ahead.”
Consideration paid by Midland in the transaction was 405,000 shares of Midland common stock and approximately $1.0 million of cash. HomeStar redeemed all of its outstanding Trust Preferred Securities prior to the closing.
Midland States Bancorp is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. As of March 31, 2019, the Company had total assets of approximately $5.64 billion and its Wealth Management Group had assets under administration of approximately $3.10 billion.
Midland provides a full range of commercial and consumer banking products and services, business equipment financing, merchant credit card services, trust, investment management and financial planning services. In addition, multi-family and healthcare facility FHA financing is provided through Love Funding, Midland’s non-bank subsidiary.