Continuing with its inorganic growth strategy, First Midwest Bancorp (NASDAQ:FMBI) completed the acquisition of Bridgeview Bancorp, Inc. The stock cum cash deal, valued at nearly $145 million, was announced in December 2018.
Michael L. Scudder, the chairman and CEO of First Midwest stated, “We look forward to building upon the legacy of exceptional client service and community engagement that Bridgeview Bank has personified over these many years. We are equally excited to bring to our newest clients a broader array of products and online capabilities, as well as access to one of Chicagoland’s largest branch networks.”
At the time of announcement, it was decided that each shareholder of Bridgeview Bancorp will receive 0.2767 shares of First Midwest and $1.79 in cash. First Midwest was not supposed to acquire Bridgeview Bancorp’s mortgage division.
Notably, Bridgeview Bank has nearly $1.1 billion in assets, $755 million in loans and $1 billion in deposits. Also, the firm has 13 banking offices across greater Chicagoland. At the time of completion of the deal, all branches of Bridgeview Bank were converted to First Midwest branches.
First Midwest is an active acquirer. The company has grown significantly over the years through buyouts.
In January 2019, the company closed the agreement to acquire Northern Oak Wealth Management, Inc. — a registered investment adviser. In October 2018, it completed the acquisition of Waukegan, IL-based Northern States Financial Corporation.
With a strong balance sheet and liquidity position, First Midwest will likely continue with its inorganic expansion efforts, which have so far resulted in improved revenues and rise in market share.
Shares of First Midwest have gained merely 0.7% so far this year compared with 11.7% growth for the industry it belongs to.
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