mick
6 years ago
EFFINGHAM, Ill. and MANTENO, Ill., April 02, 2019 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (MSBI) (the “Company” or “Midland”) and HomeStar Financial Group, Inc. (“HomeStar”) today announced that they have entered into a definitive agreement whereby Midland will acquire 100% of the common stock of HomeStar, and its wholly owned subsidiary HomeStar Bank and Financial Services (“HomeStar Bank”), in exchange for 405,000 shares of Midland common stock.
HomeStar Bank is a full-service community bank headquartered in Manteno, Illinois, with approximately $375 million of assets, $223 million in loans and $333 million in deposits as of December 31, 2018. Serving its communities for over 70 years, HomeStar Bank has 5 locations in northern Illinois and has the #1 deposit market share in the Kankakee, IL metropolitan statistical area (MSA). For the quarter ended December 31, 2018, HomeStar had a cost of deposits of 0.20%, an average loan yield of 5.13%, and a net interest margin of 3.88%.
Jeff Ludwig, President and Chief Executive Officer of Midland, commented, “HomeStar has a deep history and strong commitment to their customers, employees and communities as evidenced by their leading market share position. 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.”
Bill Smith, Chief Executive Officer of HomeStar, said, “I am very proud of all we have accomplished at HomeStar. Midland is an excellent merger partner for HomeStar due to their commitment to serving their clients and similar community banking model. We believe the complementary strengths of this combined organization will provide a stronger future for our customers, employees and the communities we serve.”
Based upon the closing price of Midland common stock of $24.46 as of April 1, 2019, the transaction has a value to HomeStar shareholders of approximately $9.9 million assuming adjusted shareholders’ equity of HomeStar at closing of $10.4 million, after taking into account certain transaction-related gains. The value of the actual consideration paid will adjust dollar-for-dollar (up or down) with respect to HomeStar’s shareholders’ equity at closing versus the $10.4 million target in the manner set forth in the Merger Agreement.
Midland expects the transaction to close in the third quarter of 2019 and be approximately 9% accretive to earnings per share in 2020, the first full year of combined operations. Midland also expects to incur tangible book value per share dilution of approximately 2% upon the closing of the transaction, with an expected earn-back period of approximately 2 years using the cross-over method, inclusive of expected gains and purchase accounting adjustments.
Under the terms of the definitive agreement, prior to, or concurrent, with closing, HomeStar’s outstanding TruPS will be redeemed with $23.5 million of cash provided by Midland, at a discount to par value plus accrued interest, generating an expected gain of approximately $11.7 million. Additionally, prior to closing, HomeStar will sell its interests in both its Insurance Agency and Title Company business lines.
The transaction has been approved by HomeStar’s board of directors and is subject to regulatory approvals, the approval of HomeStar’s shareholders, and the satisfaction of customary closing conditions.
A presentation with additional information regarding the transaction can be accessed on the Webcasts and Presentations page of the Company’s investor relations website.
Keefe, Bruyette & Woods, A Stifel Company served as financial advisor to Midland, and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as Midland’s legal advisor. Monroe Financial Partners, Inc. served as financial advisor to HomeStar, and Gerrish Smith Tuck served as HomeStar’s legal advisor.
About Midland States Bancorp, Inc.
Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. As of December 31, 2018, the Company had total assets of $5.6 billion and its Wealth Management Group had assets under administration of approximately $2.9 billion. Midland provides a full range of commercial and consumer banking products and services, merchant credit card services, trust and investment management, and insurance and financial planning services. In addition, commercial equipment leasing services are provided through Heartland Business Credit, and multi-family and healthcare facility FHA financing is provided through Love Funding, Midland’s non-bank subsidiaries. For additional information, visit www.midlandsb.com or follow Midland on LinkedIn at https://www.linkedin.com/company/midland-states-bank.
SevenTenEleven
8 years ago
MSBI - Midland States Bancorp, Inc. (NASDAQ: MSBI) to Ring the Nasdaq Stock Market Closing Bell
MIDLAND STATES BANCORP, INC. (NASDAQ:MSBI)
Today : Tuesday 4 October 2016
What:
Midland States Bancorp, Inc. (NASDAQ:MSBI), a community-based financial holding company headquartered in Effingham, Illinois and the sole shareholder of Midland States Bank, will visit the Nasdaq MarketSite in Times Square.
In honor of the occasion, Leon J. Holschbach, Vice Chairman, President and Chief Executive Officer, will ring the Closing Bell.
Where:
Nasdaq MarketSite – 4 Times Square – 43rd & Broadway – Broadcast Studio
When:
Wednesday, October 5, 2016 – 3:45 p.m. to 4:00 p.m. ET
Midland States Bancorp Contact:
Douglas J. Tucker
dtucker@midlandsb.com
(217) 342-7566
Nasdaq MarketSite:
Emily Pan
(646) 441-5120
emily.pan@nasdaq.com
Feed Information:
Fiber Line (Encompass Waterfront): 4463
Gal 3C/06C 95.05 degrees West
18 mhz Lower
DL 3811 Vertical
FEC 3/4
SR 13.235
DR 18.295411
MOD 4:2:0
DVBS QPSK
Social Media:
For multimedia features such as exclusive content, photo postings, status updates and video of bell ceremonies, please visit our Facebook page:
http://www.facebook.com/NASDAQ.
For photos from ceremonies and events, please visit our Instagram page:
http://instagram.com/nasdaq
For livestream of ceremonies and events, please visit our YouTube page:
http://www.youtube.com/nasdaq/live
For news tweets, please visit our Twitter page:
http://twitter.com/nasdaq
For exciting viral content and ceremony photos, please visit our Tumblr page:
http://nasdaq.tumblr.com/
Webcast:
A live stream of the Nasdaq Closing Bell will be available at:
https://new.livestream.com/nasdaq/live or http://www.nasdaq.com/about/marketsitetowervideo.asx
Photos:
To obtain a hi-resolution photograph of the Market Close, please go to http://business.nasdaq.com/discover/market-bell-ceremonies and click on the market close of your choice.
About Midland State Bancorp, Inc.
Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. Midland had assets of approximately $3.0 billion, and its Midland Wealth Management Group had assets under administration of approximately $1.2 billion as of June 30, 2016. Midland provides a full range of commercial and consumer banking products and services, merchant credit card services, trust and investment management, and insurance and financial planning services. In addition, commercial equipment leasing services are provided through Heartland Business Credit, and multi-family and healthcare facility FHA financing is provided through Love Funding, Midland's non-bank subsidiaries. Midland has more than 80 locations across the United States. For additional information, visit www.midlandsb.com or follow Midland on LinkedIn at https://www.linkedin.com/company/midland-states-bank.
About Nasdaq
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, clearing, exchange technology, listing, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to more than 3,700 listed companies with a market value of approximately $9.3 trillion and nearly 18,000 corporate clients. To learn more, visit: nasdaq.com/ambition or business.nasdaq.com.
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