DANVILLE — Old National and First Midwest banks have announced a merger, with the banks to operate under the Old National name.
The transaction is expected to close in late 2021 or early 2022, subject to customary closing conditions, including regulatory and shareholder approvals.
The banks have $45 billion in total assets and $34 billion in total deposits.
Officials say the impact on any local bank locations and their employees is not yet determined with the consolidation.
First Midwest has two locations in Danville on Gilbert and North Vermilion streets. It had closed previous locations in downtown Danville and on Voorhees Street.
Old National has two Danville locations on West Main Street and North Vermilion Street. It also has a Covington, Ind., location.
“We have no overlap in Covington. We have little overlap in Danville. Both organizations are committed and honored to serve the Danville market. Moving forward, we will collectively review the service delivery model and ensure that we have the best strategy to continue to provide premier service to the market,” according to Kathy Schoettlin, chief brand and culture officer, executive vice president, Old National Bank, Evansville, Ind.
Old National Bancorp and First Midwest Bancorp, Inc. jointly announced they have entered into a definitive merger agreement to combine in an all-stock merger of equals transaction with a total market value of $6.5 billion to create a premier Midwestern bank with $45 billion in combined assets.
With nearly 270 combined years of service and a shared commitment to Midwestern values, Old National and First Midwest are two organizations driven by a customer-centric approach to banking, an unwavering commitment to community and a strong focus on corporate social responsibility, making the combined entity the premier choice for employees, clients and shareholders, according to a press release.
Under the terms of the merger agreement, which has been 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. Following completion of the transaction, former First Midwest stockholders are expected to collectively represent approximately 44% of the combined company.
The new organization will operate under the Old National Bancorp and Old National Bank names, with dual headquarters in Evansville, Ind., and Chicago, Ill., Michael Scudder, chairman and CEO of First Midwest Bancorp, will serve as the executive chairman and Jim Ryan, chairman and CEO of Old National Bancorp, will maintain his role as CEO.
The complete executive leadership team is expected to be announced prior to close.
“First Midwest and Old National are two relationship-focused financial institutions that have rich histories, extremely compatible cultures and a shared commitment to helping our clients achieve financial success,” said Michael Scudder, chairman and CEO of First Midwest. “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.”
“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 Old National Chairman and CEO Jim Ryan. “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.”
Strategic benefits of the merger include:
· Strengthened market position: The combined organization will create the sixth largest bank headquartered in the Midwest, with a presence in six of the largest Midwestern MSAs, strong commercial banking capabilities, a robust retail footprint and a significant wealth platform.
· Community engagement: The merger enables the combined entity to build on both organizations’ longstanding history of service, enhance its ability to champion community initiatives and drive positive change throughout its footprint.
Old National Bancorp, the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. With $23.7 billion in assets, it ranks among the top 100 banking companies in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for 10 consecutive years. Since its founding in Evansville in 1834, Old National Bank has focused on community banking by building long- term, highly valued partnerships and keeping our clients at the center of all we do. This is an approach to business that it calls The ONB Way. Today, Old National’s footprint includes Indiana, Illinois, Kentucky, Michigan, Minnesota and Wisconsin. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment and capital market services.
First Midwest is a relationship-focused financial institution and one of the largest independent publicly traded bank holding companies based on assets headquartered in Chicago and the Midwest, with approximately $21 billion of assets and an additional $14 billion of assets under management. First Midwest Bank and First Midwest’s other affiliates provide a full range of commercial, treasury management, equipment leasing, consumer, wealth management, trust and private banking products and services. The primary footprint of First Midwest’s branch network and other locations is in metropolitan Chicago, southeast Wisconsin, northwest Indiana, central and western Illinois, and eastern Iowa.