Old National Bancorp of Evansville and First Midwest Bancorp Inc. of Chicago are merging.
The combination will create a financial institution with about $45 billion in assets but also will see the end of the First Midwest brand, the banks said in a June 1 statement. The company will operate as Old National Bancorp while its retail sites will be Old National Bank locations.
The all-stock merger has total market value of $6.5 billion.
“First Midwest’s leadership team and colleagues not only mirror the Old National mission, values and culture, they also offer exceptional consumer and commercial banking services,” said Jim Ryan, Old National chairman and CEO. “We are confident that the powerful synergies, additional market coverage and financial strength this partnership creates will drive long-term shareholder value, and we are excited about combining the outstanding legacies of two strong, client- and community-focused organizations.”
The deal was unanimously approved by the boards of directors of both companies. First Midwest stockholders will receive 1.1336 shares of Old National common stock for each share of First Midwest common stock they own.
At the close of the deal, former First Midwest stockholders are expected to collectively represent approximately 44% of the combined company, the banks said. The new organization will maintain dual headquarters in Evansville and Chicago.
Michael Scudder, chairman and CEO of First Midwest Bancorp, will serve as the executive chairman and Ryan will maintain his role as CEO.
Additional leadership positions for the combined companies include:
- Mark Sander, president and COO (First Midwest)
- Jim Sandgren, CEO of commercial banking (Old National)
- Brendon Falconer, CFO (Old National)
- Kendra Vanzo, chief administrative officer (Old National)
- Kevin Geoghegan, chief credit officer (First Midwest)
- Thomas Prame, CEO of community banking (First Midwest)
- Chady AlAhmar, CEO of wealth wanagement (Old National)
The board of directors of the combined company will have 16 directors, including 8 directors from Old National and 8 directors from First Midwest. Becky Skillman, lead independent director for Old National, will retain this position in the combined company.
Scudder said First Midwest and Old National are two relationship-focused financial institutions that have rich histories.
“As a combined organization, we will be in an even stronger position to invest, grow and innovate in talent, capabilities and services that will enhance an already superior client experience and further set us apart as a market leader not only in Chicago but across the Midwest,” he said.
Representatives for the banks said the combined operations creates the sixth largest Midwest-based bank. The deal is expected to close later this year or in early 2022.
First Midwest has more than 100 branches in the Chicago area and Northwest Indiana. Old National operates more than 160 locations across Indiana, Illinois, Kentucky, Michigan, Minnesota and Wisconsin.
Old National has locations in the South Bend and Elkhart areas.