Merger plans announced between parent companies of Midwest Bank and Princeville State Bank

PEORIA (25News Now) - The parent company of Princeville State Bank is merging with the owner of Midwest Bank, which has branches in East Peoria and Galesburg.

Princeville State Bank’s parent company, Main Street Bancorp, Inc., will become a part of Western Illinois Bancshares, Inc., in an all-stock transaction, according to a news release.

Western Illinois Bancshares is Midwest Bank’s parent company. The news release said Midwest Bank and Princeville State Bank will continue to operate as “independent, separately chartered banks” after the deal is finalized. Together, they will have total assets of approximately $800 million, the news release said.

Princeville State Bank has a Peoria branch in addition to the one in Princeville.

The news release does not mention if there will be any staff reductions, but it says the merger is expected to produce “overall expense reductions through combined functions and elimination of duplicate vendor contracts.”

The companies say other benefits for the banks’ shareholders include a broader range of financial products and services for customers, leading to increased non-interest income and expectations for better operating and financial performance.

“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,” Andrew Black, Princeville State Bank’s president and CEO, said in a prepared statement.

Midwest Bank CEO Chris Gavin also released a statement.

“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 Gavin.

“Community banks are the backbone of small business and agriculture in west central Illinois. We look to build on these relationships through our insurance, wealth management and other financial services. Our personalized approach, coupled with the latest technology, makes us a great choice. We are excited to welcome the customers of Princeville State Bank to the Western Illinois Bancshares family.” Gavin said.

Princeville State Bank has branches at 4924 West American Prairie Drive in Peoria and at 142 East Main Street in Princeville.

Midwest Bank, formerly the National Bank of Monmouth, has a branch at 300 East Washington Street in East Peoria and at 612 West Main Street in Galesburg.

The merger is expected to close before the end of this year.

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