Old National Bank, First Midwest to merge
EVANSVILLE, Ind. (WFIE) - Officials with Old National Bank announced Tuesday that they have entered into a merger with First Midwest to create a new organization.
Officials say the agreement will create a Midwestern bank with $45 billion in combined assets.
“A $45 billion powerhouse that will serve the broader Midwest. Most notably First Midwest has a long history of serving the Chicago Suburban markets and we’re excited to be entering the Chicago market in such a big way with a $21 plus billion bank and really allowing us to bring the best of Old National and leveraging the best of First Midwest,” Jim Ryan, the CEO of Old National Bank.
The new organization will operate under the Old National Bancorp and Old National Bank names. Officials say they will have dual headquarters in Evansville and Chicago.
“That our commitment remains unchanged to Indiana and unchanged to Evansville. I plan to maintain my office at 1 Main Street. So the reality is I’ll be traveling a lot like I do today and make sure I’m meeting with clients and team members from across our footprint. But our commitment to Evansville does not change, and I think our commitment to Indiana, I think will only get stronger as a result of this partnership. So I’m really excited to see where this goes,” Ryan said.
According to a press release, 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.
Following completion of the transaction, officials say former First Midwest stockholders are expected to collectively represent approximately 44% of the combined company.
The press release states the merger is expected to close in late 2021 or early 2022. However, they say that’s subject to customary closing conditions, including regulatory and shareholder approvals.
“We’re proud that Evansville’s hometown bank, and largest Indiana-based bank, continues to grow,” said Mayor Lloyd Winnecke. “Today’s news demonstrates ONB’s strength, as well as its ongoing commitment to our community.”
As for consolidating employees and possible job losses, here’s what Ryan had to say.
“I think this partnership provides a good opportunity to continue to grow Old National and while we don’t have any plans today of what potential impacts might impact the support areas of our company, rest assured we’re going to take the usual and thoughtful approach on what those impacts look like. But again, I think this only drives better outcomes for Evansville and our team members located there,” Ryan said.
Ryan says these are just the very beginning stages of the merger, so there’s isn’t really a timeline yet on any of those details regarding possible job losses or if there will even be any.
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