Old National, First Midwest merging

Indiana’s Old National and Chicago-based First Midwest will be merging to create a $45 billion bank in an all-stock deal worth $2.5 billion.

The new organization will operate under the Old National Bancorp and Old National Bank names, with dual headquarters in Evansville, Ind., and Chicago. The deal is set to close late this year or early in 2022.

The $23.6 Old National currently has $13.9 billion in net loans and leases, $17.9 billion in deposits, and roughly 170 offices in Indiana, Illinois, Kentucky, Michigan, Minnesota and Wisconsin.

The $21.1 billion First Midwest has $15 billion in net loans and leases, $17 billion in deposits, and about 120 branches in Illinois, Iowa, Indiana and Wisconsin.

“As a combined organization, we will be in an even stronger position to invest, grow and innovate in talent, capabilities and services that will enhance an already superior client experience and further set us apart as a market leader not only in Chicago but across the Midwest,” said Michael Scudder, chair and CEO of First Midwest.

Scudder will serve as executive chair and Jim Ryan, chair and CEO of Old National Bancorp, will maintain his role as CEO. 

“We are confident that the powerful synergies, additional market coverage and financial strength this partnership creates will drive long-term shareholder value, and we are excited about combining the outstanding legacies of two strong, client- and community-focused organizations,” said Ryan, who has held his title since 2019.

The 16-member board will be equally drawn from both companies. Other officers at the combined company will be:

  • Mark Sander, president and chief operating officer (First Midwest)
  • Jim Sandgren, CEO of commercial banking (Old National)
  • Brendon Falconer, chief financial officer (Old National)
  • Kendra Vanzo, chief administrative officer (Old National)
  • Kevin Geoghegan, chief credit officer (First Midwest)
  • Thomas Prame, CEO of community banking (First Midwest)
  • Chady AlAhmar, CEO of wealth management (Old National)

First Midwest stockholders will receive 1.1336 shares of Old National common stock for each share of First Midwest common stock they own. They will represent 44 percent of the combined bank.

Both companies have kept a steady stream of M&A activity over the past decade. Old National bought Minnesota’s KleinBank 2018, the most recent of a dozen transactions. First Midwest’s latest of 10 deals was for Park Bank in Madison, Wis., last year.

Keefe, Bruyette & Woods, A Stifel Company, served as exclusive financial advisor and Squire Patton Boggs (US) LLP acted as legal advisor to Old National.

J.P. Morgan Securities LLC served as exclusive financial advisor and Sullivan & Cromwell LLP acted as legal advisor to First Midwest.