Midland States Bancorp acquires HomeStar Financial Group

Midland States Bancorp announced it will acquire Manteno-based HomeStar Financial Group and its wholly owned subsidiary HomeStar Bank and Financial Services in a stock transaction valued at approximately $9.9 million.

HomeStar Bank has approximately $375 million of assets, $223 million in loans and $333 million in deposits as of December 31, 2018. The 70-year-old bank has five locations in northern Illinois and has the Number 1 deposit market share in the Kankakee metropolitan statistical area.

"HomeStar has a deep history and strong commitment to their customers, employees and communities as evidenced by their leading market share position," said Jeff Ludwig, President and Chief Executive Officer of Effingham-based Midland. "HomeStar will complement our Kankakee presence and is consistent with our strategy of partnering with institutions that have attractive deposit bases and a proven commitment to their local customers."

Midland expects the transaction to close in the third quarter of 2019.

Midland States Bancorp is the parent company of Midland States Bank. As of Dec. 31, the company had total assets of $5.6 billion and its Wealth Management Group had assets under administration of approximately $2.9 billion.