Securant Bank in Menomonee Falls, Wis., has agreed to sell its trust business to an Illinois bank.
Midland States Bank in Effingham, Ill., will buy Securant's settlement trust group, which administers trusts for clients who have received legal settlements, for an undisclosed price, according to Tuesday's online edition of the Milwaukee-Wisconsin Journal-Sentinel.
"This sale provides Securant with capital that we feel can be deployed more effectively in other areas of our operations," David Davis, Securant's president and chief executive, told the publication. "We plan to redouble our efforts to focus on the small to mid-sized business community."
The $206 million-asset Securant has been operating under a consent order with the Federal Deposit Insurance Corp. and the Wisconsin Department of Financial Institutions since August 2010. The order requires Securant to hold adequate capital. At Dec. 31, the bank had a Tier 1 leverage ratio of 3.97% and a total risk-based capital ratio of 7.05%, according to the FDIC.
Securant's parent, Capital Commerce Bancorp, has a written agreement with the Federal Reserve Board.
Midland States has $1.6 billion in assets and 32 offices in Illinois and Missouri.
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