One of Rockford's largest banks, Amcore, has agreed to sell off 12  branches to Midland States Bank of Effingham, Illinois.

Midland States Bank is set to acquire branches that are located in Dixon, Freeport, Mendota, Oregon, Peru, Princeton, Rock Falls and Sterling. For Amcore, which also sold four rural Wisconsin branches in November, this sale is another step in an effort to assure the bank is adequately capitalized.

Both sides seem eager for a finalized agreement. "We are excited to be establishing a banking presence in Northern Illinois...,” said Leon Holschbach, CEO of Midland States Bank of Effingham. Effingham is located about 250 miles south of Rockford.

Amcore was formed in 1985, “when American National Bank and Illinois National Bank merged to form the largest bank headquartered in Rockford,” according to the bank's website. Following the transaction, Amcore will have a total of 52 branches located in Illinios and Wisconsin. The sale is likely to be finalized in first quarter 2010, reports CNN.com.

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