Two downstate Illinois banks said they plan to merge in an $11.7 million deal.

Midland States Bancorp, the parent of $193.4 million-asset Effingham State Bank, said last week that it expects to buy $49 million-asset CSB Financial Group Inc. of Centralia in an all-stock deal valued at $16 a share.

The deal price is a 15% premium over CSB's $10.2 million book value. Midland States said it expects to close the deal in May.

The Effingham bank also has a deal for a Greenville, Ill., branch of Associated Banc-Corp. of Green Bay, Wis. This deal is expected to close in February.

"For a bank our size, we've become a pretty active acquirer recently," said Randall J. Dempsey, president of Midland States.

Upon closure of both deals, Midland States would have six offices, all in Illinois. It already has branches in Effingham, Farina, and Altamont. CSB has offices in Centralia and Carlyle.

-Craig Woker

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