Effingham-based Midland States Bank and Sterling National Bank announced an agreement last week for Midland to acquire approximately $400 million in wealth management assets from New York-based Sterling.
The anticipated transaction closing date is expected to be in the second or third quarter this year. Midland plans to retain all 10 members of Sterling’s trust department, bringing Midland’s wealth management group to 45 professionals. The transaction is subject to regulatory approval and other customary closing conditions.
The assets in question originally came from Hudson Valley Bank, which merged with Sterling last year. A majority of the assets are held within special needs and settlement trusts. Midland gained experience in this specialized field when it acquired a Milwaukee-based settlement trust group in 2013.
“Sterling National’s trust team gives us additional expertise and critical mass in the court-appointed settlement trust business,” Midland Wealth Management Group President Eric Chojnicki, said. “Their team is client driven through the creation of customized strategies, which is a cultural fit to the way we work with our clients. We are excited to have them join our team.”