First Midwest Bancorp to Acquire Park Bank in Milwaukee
AUG 29, 2019 - 6:45 am
First Midwest Bancorp entered into a definitive agreement to acquire Bankmanagers and its wholly owned subsidiary, Park Bank. Founded in 1915, Park Bank is one of the largest independent commercial banks in Milwaukee with approximately $1 billion of total assets, $815 million of deposits, of which approximately 85% are core deposits, and $700 million of loans.
“We are extremely excited to welcome Park Bank’s customers and team members to First Midwest,” said Michael L. Scudder, chairman and CEO of First Midwest. “Park Bank is a trusted financial institution with established and experienced bankers who understand the Milwaukee market and the business and personal needs of their customers. We look forward to building on this trust and to providing award-winning service to Park’s customers as we further expand into the attractive Milwaukee market.”
First Midwest has taken several recent steps to grow its presence in Milwaukee. In January 2019, First Midwest acquired Northern Oak Wealth Management, a registered investment adviser with approximately $850 million of assets under management. In March 2019, First Midwest opened a loan production office to service commercial real estate and commercial customers.
David Werner, president and CEO of Park Bank, will lead the Milwaukee and southeast Wisconsin market for First Midwest.
“First Midwest’s mission of helping its customers achieve financial success is aligned with our client-first approach,” said Werner. “Joining First Midwest will enable us to both continue and enhance our commitment to relationship-banking as well as offer our customers a broader array of products and services. First Midwest is very familiar with the Milwaukee market, and we look forward to becoming part of the First Midwest family.”
The merger agreement provides for a fixed exchange ratio of 29.9675 shares of First Midwest common stock, plus $623.02 in cash for each share of Bankmanagers common stock, with an overall transaction value of approximately $195 million, subject to certain adjustments.
The transaction is subject to customary regulatory approvals, the approval of Bankmanagers’ shareholders and the completion of various closing conditions and is anticipated to close by January 2020.
Sandler O’Neill + Partners acted as exclusive financial advisor to First Midwest in this transaction, and Stephens Inc. acted as exclusive financial advisor to Bankmanagers. Chapman and Cutler served as transaction counsel to First Midwest, and Barack Ferrazzano Kirschbaum & Nagelberg served as Bankmanagers’ transaction counsel.
First Midwest is a relationship-focused financial institution and one of the largest independent publicly traded bank holding companies based on assets headquartered in the Midwest, with approximately $17.5 billion of assets and $12 billion of assets under management. First Midwest’s principal subsidiary, First Midwest Bank, and other affiliates provide a full range of commercial, treasury management, equipment leasing, consumer, wealth management, trust and private banking products and services through locations in metropolitan Chicago, southeast Wisconsin, northwest Indiana, central and western Illinois, and eastern Iowa.
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