Illinois-based Midland States Bancorp has agreed to acquire local firm Alpine Bancorporation in a transaction involving cash and stock of worth $181m.

Alpine Bancorporation is the holding company of Alpine Bank and Trust, which is offering commercial, retail, mortgage banking and wealth management services to customers since 110 years.

It has around $1.3bn in assets, loan book of $830m and deposits of $1.1bn.

The transaction results in a combined entity with around $6bn in total assets and $3bn assets under administration in wealth management business.

Under the agreement, Alpine receives 4.5 million shares and $33.3m in cash from Midland, based on Midland’s share value on 13 October 2017. Midland expects the transaction to be 10% accretive to earnings per share in 2019.

The deal is approved by company’s board of directors and is expected to be completed in the first quarter of 2018, subject to regulatory and shareholders’ approval.

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Midland president and CEO Leon Holschbach said: “Alpine has a similar commercially-focused community bank model combined with a wealth management platform, making the company an excellent strategic and cultural fit with Midland.

“Through a passionate commitment to customer service and relationship banking, Alpine has built a highly attractive core deposit base that will positively impact our overall liquidity and cost of funds.

“With the additional scale and synergies provided by this acquisition, we expect to see a significant improvement in our level of profitability and further growth in the contribution from our wealth management business.”

Alpine chairman of the board Robert Funderburg said: “With our similar business models and approach to community banking, we anticipate a smooth transition for our customers and employees to the Midland franchise.”