The largest locally owned bank in the Rockford area has agreed to be acquired for approximately $181 million in cash and stock.
Alpine Bancorporation, Inc., the parent company of Alpine Bank & Trust Co., is headquartered in Belvidere. It had total assets of $1.3 billion as of June 30.
It is being purchased by Effingham-based Midland States Bancorp, Inc., which trades on the NASDAQ exchange under the symbol MSBI. With the acquisition, Midland will become the fourth-largest community bank in Illinois, with total assets of approximately $6 billion and nearly $3 billion in wealth-management accounts.
The boards of both banks have approved the deal unanimously. Stockholder and regulatory approval are expected early next year.
Alpine and its 19 locations evolved from Farmers State Bank, which opened in Belvidere in 1908. Along the way, the bank acquired several other financial institutions and was renamed Belvidere National Bank and Trust Company in 1967. Nine years later, Alpine State Bank was acquired; in turn, it acquired various other institutions. Alpine Bank and Belvidere Bank merged in 2008.
Three generations of the Funderburg family have been instrumental in the growth of the company. R. Robert “Rob” Funderburg, Jr., is the grandson of an early president of Farmers State Bank and the son of the man who brought the Alpine name into the company.
The Funderburg family and the various financial institutions have been major contributors to culture and charities in their communities for decades.
“I am very proud of what we have accomplished at Alpine Bank and the deep customer relationships we have built throughout the communities that we serve,” Rob Funderburg said in a news release. “With our similar business models and approach to community banking, we anticipate a smooth transition for our customers and employees to the Midland franchise.”
As part of the transaction, Funderburg will join the Midland board.
Leon J. Holschbach, President and Chief Executive Officer of Midland, called Alpine “a very attractive merger partner.”
“Earlier in my banking career, I had the opportunity to work in Rockford and have always believed it would be a good market for Midland,” Holschbach said. “We expect to see a significant improvement in our level of profitability and further growth in the contribution from our wealth management business.”
Midland has a history of acquiring successful community banking companies. In January 2017, it acquired Ottawa-based Centrue Financial Corporation and its 20 branches in northern Illinois with total assets of $978 million.