First Midwest Merges With Old National In $6.5 Billion Deal

Chicago’s First Midwest Bank and Indiana’s Old National Bank have signed a $6.5 billion definitive merger agreement to create a midwestern financial institution (FI) with $45 billion in combined assets.

Under the deal, First Midwest will be folded into the Old National banner, with dual headquarters in Evansville, Indiana and Chicago, Illinois, and a combined executive team, according to a press release on Tuesday (June 1).

“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.

The two banks have almost 270 combined years of experience and a “shared commitment to Midwestern values,” according to the statement. The two institutions also have a “customer-centric” philosophy, are committed to the local communities they serve and take corporate social responsibility seriously, the release said.

“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.

First Midwest stockholders will receive 1.1336 shares of Old National stock for each share of First Midwest stock they own. Former First Midwest stockholders are anticipated to represent about 44 percent of the combined company. 

First Midwest Chairman and CEO Michael Scudder will serve as the executive chairman. Chairman and CEO of Old National Jim Ryan will maintain his role.

Mergers and acquisitions among FIs are on the rise, with 19 deals announced in April alone, the most since the pandemic took hold in March 2020. From January through May of this year, there were 53 deals worth a total of $24.83 billion. During the same period last year, 43 were announced, valued at $6.53 billion. 

In an interview with PYMNTS’ Karen Webster, NCR Digital Banking Senior Vice President and General Manager Doug Brown predicted there would be a surge in dealmaking post-pandemic.