EFFINGHAM, IL, and MONTEBELLO, NY--(Marketwired - November 10, 2016) - Midland States Bancorp, Inc. (NASDAQ: MSBI) and Sterling National Bank, a wholly-owned subsidiary of Sterling Bancorp (NYSE: STL) announced today that Midland States Bank, Midland's wholly-owned bank subsidiary, has completed its acquisition of the trust department of Sterling National Bank of Montebello, New York. With the acquisition of Sterling's approximately $400 million in managed assets, Midland has increased the size of its wealth management operations to approximately $1.6 billion in assets under administration.
Midland has retained all 12 members of Sterling's trust department, bringing Midland's Wealth Management Group to 45 professionals. As part of the transaction, Midland also established a trust office in Tarrytown, New York, which will operate under the name of Midland Trust Company, a subsidiary of Midland States Bank.
Leon Holschbach, President and Chief Executive Officer of Midland, said, "We are very pleased to complete this transaction, which continues the growth of our wealth management business and further increases our non-interest income. We are always looking for opportunities to bring talented and experienced professionals into the Midland family, especially when we can add teams who have worked together and share our approach to providing superior customer service. I want to extend a hearty welcome to the New York team joining us."
"We are excited to complete the sale of our trust business to Midland and believe that our clients will enjoy a smooth transition and benefit from Midland's excellent track record of service and significant experience in this area. This transaction will allow Sterling to continue focusing on executing our strategy of serving middle market commercial clients through our differentiated team-based, relationship banking model," said Jim Peoples, Sterling's Chief Banking Officer.
The majority of the trust assets acquired by Midland are held within Special Needs and Settlement Trusts. This acquisition enhances Midland's existing Special Needs and Settlement Trust business, which it entered in 2013, and brings its assets under management in this area to approximately $450 million.
Eric Chojnicki, President of Midland Wealth Management, said, "We are thrilled to have another accomplished team joining our Wealth Management team. This transaction enhances our ability to serve our customers, especially in the areas of Special Needs and Settlement Trust. The Sterling team shares our client-focused philosophy, and we believe the expanded capabilities they provide will improve our ability to continue expanding our wealth management business in the future."
Keefe, Bruyette & Woods, Inc. served as financial advisor to Sterling and Wachtell, Lipton, Rosen & Katz served as Sterling's legal counsel in connection with the transaction. Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to Midland.
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. Midland had assets of approximately $3.2 billion, and its Midland Wealth Management Group had assets under administration of approximately $1.2 billion as of September 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 Sterling National Bank
Sterling Bancorp, of which the principal subsidiary is Sterling National Bank, specializes in the delivery of service and solutions to business owners, their families, and consumers within the communities we serve through teams of dedicated and experienced relationship managers. Sterling National Bank offers a complete line of commercial, business, and consumer banking products and services. Additional information is available at: www.sterlingbancorp.com.
Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements," including but not limited to statements about Midland's wealth management operations. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; and other risks detailed from time to time in filings made by Midland and Sterling with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe" or "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.