Monmouth, Ill.-based Western Illinois Bancshares is acquiring Princeville, Ill.-based Main Street Bancorp in an all-stock deal, local media reported on April 26.
Western Illinois Bancshares is the parent company of $669 million Midwest Bank. Main Street Bancorp is the parent company of $121 million Princeville State Bank. Both banks are expected to operate independently with separate charters after the deal is finalized, according to the report.
The price of the deal was not disclosed. The acquisition is expected to close before the end of the year.
The merger will allow for fewer expenses through combined functions and elimination of duplicate vendor contracts, according to Midwest Bank. The bank expects a broader array of customer financial products and services will lead to a rise in non-interest income.
“Main Street Bancorp is a great fit for our company as they share our vision for strategic growth and the establishment of a community-centered financial services model,” said Midwest Bank CEO Chris Gavin.
Princeville State Bank President and CEO Andrew Block said Western Illinois Bancshares “stood out as a good partner for our shareholders, customers and the communities we serve. We are both committed to community banking, and we share similar cultures and values. We are excited about the additional services this partnership will bring to our customers.”
Detroit, Mich.-based Dickinson Wright PLLC served as legal counsel to Western Illinois Bancshares. Memphis, Tenn.-based Gerrish Smith Tuck PC served as legal counsel to Main Street Bancorp. Great Falls, Mont.-based D.A. Davidson & Co. served as financial adviser to both Western Illinois Bancshares and Main Street Bancorp.