Illinois-based First Busey, the parent of Busey Bank, has agreed to acquire local lender Mid Illinois Bancorp, the parent of South Side Trust & Savings Bank of Peoria, in a deal worth about $133.4m.

First Busey said that the merger deal would strengthen its existing deposit, commercial banking and trust and investment presence in the greater Peoria area.

South Side Bank comprises 13 branches within the greater Peoria area, while First Busey has five branches within the Peoria area.

Mid Illinois president and CEO Mark Joseph will assume the role of executive vice-president and commercial market president for Peoria at Busey Bank following conclusion of the merger that is anticipated in the second half of 2017.

Following completion of the parent companies’ merger, South Side is expected to merge with and into Busey Bank in the first quarter of 2018.

First Busey president and CEO Van Dukeman said: “The acquisition of South Side Bank enhances our presence in Peoria, a market important to us and core to our franchise. South Side is the premier community bank in Peoria with a ninety-five year history and deep ties to the communities it serves. 

“We are excited about the opportunities South Side’s uniquely attractive deposit franchise and trust and investment business present in Peoria and across our footprint.”