AMCORE Bank sells 12 branches, 2 stand-alone drive-ups
From press release
AMCORE Bank, N.A., a wholly-owned subsidiary of AMCORE Financial, Inc., announced Jan. 5 that it has reached a definitive agreement with Midland States Bank of Effingham, Ill., to sell 12 branches and two stand-alone drive-ups. The branches are in Dixon, Freeport, Mendota, Oregon, Peru, Princeton, Rock Falls and Sterling.
The transaction includes approximately $480 million in loans, $540 million in deposits and sweep accounts, up to $400 million 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 percent deposit premium and a $1.5 million trust account premium. The transaction, which is subject to regulatory and other customary closing conditions, is expected to close in the first quarter 2010.
In making the announcement, AMCORE Chairman and Chief Executive Officer William McManaman said, “The sale of these branches, when completed, demonstrate that our rebuilding efforts continue to move forward and remain on track.”
AMCORE recently reported several events aimed at improving its capital position, including the sale of $135 million in non-strategic, non-relationship loans, the completed sale of four rural Wisconsin branches in November, and recent tax legislation that will result in a federal income tax refund of $25 to $30 million.
“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,” said McManaman. “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.”
AMCORE Market President Jeff Lovett 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. “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,” said McManaman. “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.”
AMCORE Financial, Inc., has headquarters in northern Illinois and has banking assets of $4 billion with 66 locations in Illinois and Wisconsin. Once the sale is completed, AMCORE will have 52 branches. AMCORE provides a full range of consumer and commercial banking services, a variety of mortgage lending products and wealth management services including trust, brokerage, private banking, financial planning, investment management, insurance and comprehensive retirement plan services.
Further information about AMCORE Financial, Inc., can be found at the company’s Web site at www.AMCORE.com.
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