First Midwest On Acquisition Spree, To Buy Bridgeview Bank
Zacks Investment Research | Dec 07, 2018 07:58AM ET
First Midwest Bancorp (NASDAQ:FMBI) is continuing with its inorganic growth strategy. The company has announced a deal to acquire Bridgeview Bancorp, Inc. The stock cum cash deal, valued at nearly $145 million, is expected to close in second-quarter 2019.
Michael L. Scudder, Chairman, President and CEO of First Midwest said, “Joining forces with Bridgeview brings to all of our clients an expanded footprint across Chicago and further enhances our position as metro Chicago’s premier commercial bank.”
Transaction Details
Per the terms of the deal, each shareholder of Bridgeview Bancorp will be receiving 0.2767 shares of First Midwest and $1.79 in cash. The deal is still subject to regulatory approvals and consent of Bridgeview Bancorp’s shareholders.
Notably, First Midwest is not acquiring Bridgeview Bancorp’s mortgage division.
As of Sep 30, 2018, Bridgeview Bancorp had $1.2 billion in assets, $1.1 billion in deposits and $800 million in loans (excluding mortgage portfolio). The firm has 13 banking offices across greater Chicagoland. The deal will, thus, further expand First Midwest’s footprint in the region.
Road Ahead
First Midwest is an active acquirer. The company has grown significantly over the years through buyouts.
In November, First Midwest announced an agreement to acquire Northern Oak Wealth Management, Inc. — a registered investment adviser. Earlier in October, the company completed the acquisition of Waukegan, IL-based Northern States Financial Corporation.
With strong balance sheet and liquidity position, First Midwest will likely continue with its inorganic expansion efforts. This has resulted in improved revenues and rise in market share.
Shares of First Midwest have lost 8.9% so far this year compared with 5.3% decline for the Zacks Investment Research
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