Old National Bancorp First Midwest Merger Overview and Analysis

Old National Bancorp and First Midwest Bank announced a merger in September 2021, creating the largest bank in the Midwest.

The combined bank will have over $45 billion in assets and more than 160 locations across the region.

The merger is expected to be completed in the second half of 2022, pending regulatory approvals.

The new bank will be led by Michael O'Malley, who will serve as CEO and President.

The merger agreement between Old National Bancorp and First Midwest Bancorp is a significant deal that will create a $45 billion-asset Midwestern regional player.

The combined institution will be named Old National, and the board of directors will be split evenly between First Midwest and Old National, with eight directors from each company.

The merger is expected to close late in 2021 or early in 2022, and First Midwest shareholders will receive 1.1336 Old National shares for each First Midwest share they own.

The estimated price of the deal is $2.5 billion, and the combined company will have a market capitalization of $6.5 billion.

Here's a breakdown of the key terms of the merger agreement:

The merger is expected to create significant cost savings, with $109 million in identified savings equivalent to 11% of the combined noninterest cost base.

Old National projects that it will earn back the dilution to its tangible book value in a little over three years, and also expects 22% earnings accretion in 2022.

The Old National, First Midwest merger has been approved, marking a significant milestone for both banks.

The merger is expected to create a banking powerhouse with assets of over $46 billion, making it one of the largest banks in the Midwest.

Old National Bancorp will retain its name and headquarters in Evansville, Indiana, while First Midwest Bank will continue to operate under its own brand in the Chicagoland area.

The combined bank will have a presence in seven states, including Illinois, Indiana, Kentucky, Michigan, Minnesota, Ohio, and Wisconsin.

The merger is expected to be completed in the second quarter of 2023, pending regulatory approvals and other customary closing conditions.

Old National Bancorp's CEO, Mike O'Mara, will lead the combined bank, while First Midwest Bank's CEO, Mike Scudder, will join the board of directors.

The deal between Old National Bancorp and First Midwest Bancorp was announced in April 2021.

The merger was valued at approximately $6.4 billion, making it one of the largest bank deals in the US that year.

Old National Bancorp's CEO, Mike O'Malley, stated that the acquisition would expand the company's presence in the Midwest and create a stronger competitor in the region.

The combined entity would have over $40 billion in assets and operate more than 200 branches across four states.

The merger was expected to be completed by the end of 2022, pending regulatory approvals.

The Old National Bancorp and First Midwest merger is a significant deal that will create a $45 billion-asset Midwestern regional player.

The combined institution will take the Old National name, and the board of directors will be split evenly with eight directors from each company. Old National investors will own 56% of the entity.

Michael Scudder, the chairman and CEO of First Midwest, will serve as executive chairman, while Jim Ryan, the chairman and CEO of Old National, will be CEO.

The estimated price of the deal is $2.5 billion, and the combined company will have a market capitalization of $6.5 billion.

The merger is expected to create a sixth-largest Midwestern banking franchise, with a presence in six of the region's largest markets, including St. Louis, Milwaukee, Minneapolis, Indianapolis, and Chicago.

Here's a breakdown of the deal's key terms:

The combined bank will hold $34 billion of deposits and $33 billion of assets under management.

Old National projects that it will earn back the dilution to its tangible book value in a little over three years, and it's also projecting 22% earnings accretion in 2022.