Staff Reports
Old National Bancorp and First Midwest Bancorp have announced they have entered into a definitive merger agreement to combine in an all-stock merger transaction with a total market value of $6.5 billion.
The new organization will operate under Old National Bancorp and Old National Bank names with dual headquarters in Evansville and Chicago.
The new bank will have $45 billion in combined assets.
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, company officials said.
Following completion of the transaction, former First Midwest stockholders are expected to collectively represent about 44% of the combined company, officials said.
Michael Scudder, chairman and chief executive officer 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.
Additional leadership positions for the combined entity include:
Mark Sander, president and chief operating officer (First Midwest)
Jim Sandgren, CEO of commercial banking (Old National)
Brendon Falconer, chief financial officer (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 management (Old National)
The complete executive leadership team is expected to be announced prior to close on the deal.
The board of directors of the combined company will have 16 directors, consisting of eight each from Old National and First Midwest. Becky Skillman, lead independent director for Old National, will retain this position in the combined company.
Company officials said strategic benefits of the merger include a strengthened market position with the merger creating the sixth largest bank headquartered in the Midwest with a presence in six of the largest Midwestern MSAs. The banks have virtually no service area overlap.
The merger also creates the scale and profitability to accelerate digital and technology capabilities to drive future investments in consumer, wealth management and commercial banking services, officials said.
The merger is expected to close in late 2021 or early 2022 subject to customary closing conditions, including regulatory and shareholder approvals.
[sc:pullout-title pullout-title=”About Old National” ][sc:pullout-text-begin]
Old National Bancorp, the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana with a location in Seymour. The headquarters is in Evansville. The company has $23.7 billion in assets, ranking among the top 100 banking companies in the United States. Old National’s footprint currently includes Indiana, Illinois, Kentucky, Michigan, Minnesota and Wisconsin. For information, visit oldnational.com.
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First Midwest is one of the largest independent publicly traded bank holding companies based on assets headquartered in Chicago and the Midwest with $21 billion of assets and an additional $14 billion of assets under management. The primary footprint is metropolitan Chicago, southeast Wisconsin, northwest Indiana, central and western Illinois and eastern Iowa. To learn more, visit firstmidwest.com.
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