Midland States Bancorp in Effingham, Ill., has agreed to buy about $400 million in wealth management assets from Sterling Bancorp in Yonkers, N.Y.
The $3 billion-asset Midland said in a press release Tuesday that it expects to complete the acquisition in the second or third quarter. The price was not disclosed.
The $12 billion-asset Sterling had gained the wealth management assets, most of which are held within special needs and settlement trusts, after buying Hudson Valley Bank. Midland said in the release that it has experience in this specialized field through its 2013 purchase of a Milwaukee settlement trust group. Midland said it expects to keep all 10 members of Sterling's trust department.
Midland currently has $1.2 billion in wealth management assets under administration.
"Sterling National's trust team gives us additional expertise and critical mass in the court-appointed settlement trust business," Eric Chojnicki, president of Midland's Wealth Management Group, said in the release. "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."
Keefe, Bruyette & Woods and Wachtell, Lipton, Rosen & Katz advised Sterling. Barack Ferrazzano Kirschbaum & Nagelberg advised Midland.