Winnebago, Ill.-based Foresight Financial Group, Inc., is selling one of its six bank subsidiaries, State Bank of Herscher, to investor and entrepreneur Greg Kidd.
The $175 million State Bank of Herscher has two branches in Herscher and Kankakee, Ill. It had $158 million in deposits and $65 million in net loans and leases as of March 31.
Kidd is the CEO of the venture capital firm Hard Yaka and a former senior analyst for payments at the Federal Reserve Board of Governors. Rex Entsminger, Foresight Financial Group president and CEO, said the sale is part of a multi-year strategic plan to increase Foresight revenues and shareholder returns. According to the bank, Kidd’s offer included a solid premium to book value.
“This opportunity was brought to us by [Greg Kidd] after significant independent research on his part that indicated State Bank of Herscher would be an ideal fit for his mission,” Entsminger said. “[Kidd] was interested … as he had been looking for a community bank with a strong community presence and reputation located close to a major metropolitan area.”
Kidd said he plans to add a business line to drive fintech innovation. “I look forward to working with the bank’s regulators on the proposal and serving the local community in the coming years,” he said.
Foresight Financial Group is a $1.43 billion holding company. The bank’s five other subsidiaries — State Bank of Davis, Ill.; State Bank, Freeport, Ill.; Northwest Bank of Rockford, Ill.; Lena State Bank, Lena, Ill., and German State Bank, German Valley, Ill., — are not involved in the transaction.