Illinois-based Midland States Bank is acquiring Chicago’s ATG Trust Company, which has $387 million in assets under management and $3.5 million in annual revenue.
The deal raises Midland’s wealth management group to more than $3.8 billion in assets under administration and more than 90 financial professionals. Currently, it has $3.6 billion in assets under management.
Founded in 1998 as a subsidiary of Attorneys’ Title Guaranty Fund, ATG also has an investment management business primarily focused on managing IRAs.
“Over the past several years, we have effectively utilized acquisitions to grow our assets under administration, better leverage our wealth management platform, and add expertise in specialized areas,” said Jeffrey Ludwig, president and CEO of the $6.9 billion Midland States Bancorp. “The addition of ATG Trust will help us to further increase our level of recurring fee income, which is one of our long-term strategies for enhancing the value of the Midland franchise.”
The deal, set to close during the second quarter of 2021, will result in minimal tangible book value dilution, Midland States said.
“In Midland, we have found an organization whose mission aligns with our own,” said Kathryn Van Eeuwen, president and CEO of ATG. “We are excited to enhance our ability to support people and continue our story with Midland.”
Effingham-based Midland States has 49 offices in Illinois and 12 in Missouri.