First Midwest Bancorp, Inc., Chicago, parent company of First Midwest Bank, announced on June 7 it has entered into a definitive agreement to acquire Northern States Financial Corporation, the holding company for NorStates Bank, based in Waukegan, Ill.
NorStates Bank operates eight offices in Lake County, Ill., and has $500 million in assets, $400 million in deposits and $320 million in loans.
Subject to certain adjustments, the merger agreement provides for a fixed exchange ratio of 0.0369 shares of First Midwest common stock for each share of Northern States common stock. Based upon the closing price of First Midwest’s common stock on June 5, 2018 on the Nasdaq Stock Market, the overall transaction is valued at approximately $91.0 million.
“We are very excited to welcome NorStates Bank to First Midwest and build on the strong relationships that NorStates has with its customers,” said Michael L. Scudder, chairman, president and CEO of First Midwest. “This combination continues our expansion in the greater Chicagoland area and enhances our presence in Lake County where we have long-standing, deep roots.”
“We are extremely pleased to partner with First Midwest,” said Scott M. Yelvington, president and CEO of Northern States. “Like First Midwest, we have a strong commitment to relationship banking, personalized customer service and involvement in the communities we serve.”
The acquisition is subject to regulatory approvals, the approval of Northern States’ stockholders and customary closing conditions, and is presently anticipated to close in the fourth quarter of 2018.
First Midwest is one of the largest independent publicly-traded bank holding companies based on assets headquartered in the Midwest, with more than $14 billion in assets and $11 billion in trust assets under management. First Midwest’s principal subsidiary, First Midwest Bank, and other affiliates provide a full range of financial services in metropolitan Chicago, northwest Indiana, central and western Illinois, and eastern Iowa.