HomeStar Bank and Financial Services in Manteno, Ill., is being acquired by Midland States Bank in Effingham, Ill. The banks currently expect the merger to occur in October.
HomeStar, a 70-year-old community bank, has assets of approximately $375 million and operates five locations in the Kankakee/Manteno area. Midland States Bank, a 135-plus-year-old community bank with approximately $5.6 billion in assets, has 66 bank locations across Illinois and in the greater St. Louis, Mo., area. In addition to their community banking operations, HomeStar and Midland each offer wealth management and trust services and the combined wealth groups will have approximately $3.25 billion in assets under administration.
HomeStar also offers SBA lending, while Midland has a nationwide equipment financing business as well as a leading commercial FHA financing company focused on multi-family and health care facilities. Each bank also has a strong focus on community development in the Kankakee/Manteno area.
“These are two well-run, customer-centric community banks, and we are extremely happy that HomeStar has decided to join the Midland team,” said Jeff Mefford, president of Midland States. “Midland has the size and breadth of services that allow us to continue offering excellent banking services to HomeStar’s customers. This acquisition fits well with our strategy of continuing to grow in our existing markets, including in the Kankakee/Manteno area, where HomeStar and Midland are already the two leading banks by deposits. The area has a vibrant business sector and wonderful residential communities.”
HomeStar Bank CEO Bill Smith said, “At HomeStar our customers and community have always been our focus, and we are confident Midland is the right partner for us. Midland offers greater financial service and growth opportunities to our individual and business customers.”