First Midwest Bancorp Inc. has agreed to a $195 million deal to acquire Bankmanagers Corp. and its wholly owned subsidiary, Park Bank. 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,” First Midwest Chairman and CEO Michael L. Scudder said in a statement. “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, the Chicago-based company acquired Northern Oak Wealth Management, a registered investment adviser with approximately $850 million of assets under management. In March, 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.
Werner added: “First Midwest’s mission of helping its customers achieve financial success is aligned with our client-first approach. 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 Corp. 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, L.P. acted as exclusive financial adviser to First Midwest in this transaction, and Stephens Inc. acted as exclusive financial adviser to Bankmanagers Corp. Chapman and Cutler LLP served as transaction counsel to First Midwest, and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as Bankmanagers’ transaction counsel.
First Midwest is 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.