ROCKFORD — Illinois Bank & Trust will acquire Rockford Bank & Trust under an agreement announced Tuesday by officials from both financial institutions.
The transaction is subject to approval by federal and state bank regulators and to customary closing conditions.
The two financial institutions would have a combined $1.3 billion in assets and 10 banking centers after the merger. Once the deal closes, Rockford Bank & Trust will operate under the Illinois Bank & Trust name.
Illinois Bank & Trust President and CEO Jeffrey S. Hultman will be named the CEO of the combined bank. Rockford Bank & Trust President Thomas D. Budd will assume the role of president of the new institution.
“Illinois Bank & Trust and Rockford Bank & Trust share a common focus of providing excellent service to our customers and leadership for our communities,” Hultman said in a news release. “Both organizations are headquartered here in Rockford, and the new organization will remain here, bigger and stronger than ever. We will retain Rockford Bank & Trust’s heritage as a locally managed community bank, expand its footprint and increase its lending capacity.”
The transaction is expected to close in the fourth quarter of the year.
“We are excited about the opportunity to expand our team, services and commitment to the Rockford area,” Budd said. “You will see the same personal attention and the same strong support to our local nonprofits and the same volunteerism from our employees. We are enthusiastic to be joining with Illinois Bank & Trust and Heartland to offer additional financial strength and more new products and services to our customers.”
Illinois Bank & Trust serves commercial businesses, professionals and individuals from eight offices in the Rockford and northwestern Illinois markets and had approximately $853 million in total assets, $540 million of gross loans outstanding and $770 million of deposits as of June 30, according to the company’s news release.
Rockford Bank & Trust has $523 million in total assets, $423 million of gross loans outstanding and $453 million of deposits as of June 30.
Ken DeCoster: 815-987-1391; email@example.com; @DeCosterKen