Southern Indiana Business Report
EVANSVILLE — Old National Bancorp and First Midwest Bancorp Inc. announced Jan. 27 that their merger of equals transaction, announced on June 1, 2021, has received Federal Reserve approval. This action follows approvals received last year from the Office of the Comptroller of the Currency and stockholders of both companies.
With this final regulatory step completed, the merger is expected to occur on or before March 1, subject to customary closing conditions. It will create one of the largest banks headquartered in the Midwest, with more than $45 billion of combined assets, a presence in six of the largest Midwestern MSAs, strong commercial banking capabilities, a robust retail footprint and a significant wealth platform.
“With nearly 270 combined years of service and a shared commitment to Midwestern values, Old National and First Midwest are both driven by a customer-centric approach to banking and an unwavering commitment to community,” said Old National Chairman and CEO Jim Ryan, who will remain as CEO of Old National following the closing. “Receiving Federal Reserve approval paves the way for us to create a premier Midwestern bank that will provide significant benefits for our clients, team members, communities and shareholders.”
“This partnership is, at its core, a growth strategy, and as a combined organization, we will be in an even stronger position to invest, grow and innovate in talent, capabilities and services that will further set us apart as a market leader across the Midwest,” added First Midwest Chairman and CEO Mike Scudder, who will become Old National’s chairman once the merger is complete.
Post closing, the combined organization will operate under the Old National Bancorp and Old National Bank names, with dual headquarters in Evansville and Chicago, Illinois. Branch locations will continue to operate under their respective names until the system conversion is complete, which is currently anticipated to occur in July 2022.
In other Old National news from Jan. 27, the firm’s board of directors declared a quarterly cash dividend of $0.14 per share on the company’s outstanding shares of common stock. The dividend is payable March 15 to shareholders of record on March 4. For purposes of broker trading, the ex-date of the cash dividend is March 3. Based on Old National’s closing price of $18.87 on Jan. 26, the quarterly dividend represents an annualized dividend yield of 3%.
About Old National
Old National Bancorp, the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. With $24 billion in assets, it ranks among the top 100 banking companies in the U.S. and has been recognized as a World’s Most Ethical Company by the Ethisphere Institute for 10 consecutive years. Founded in Evansville in 1834, Old National’s footprint now includes Indiana, Illinois, Kentucky, Michigan, Minnesota and Wisconsin. In addition to providing extensive services in retail and commercial banking, Old National offers comprehensive wealth management, investment and capital market services. Old National trades under the NASDAQ symbol ONB. For more information and financial data, please visit Investor Relations at oldnational.com.
About First Midwest
First Midwest Bancorp Inc. is one of the largest independent publicly traded bank holding companies based on assets headquartered in Chicago, Illinois, and the Midwest, with approximately $22 billion of assets and an additional $15 billion of wealth management assets. First Midwest Bank and its other affiliates provide a full range of commercial, treasury management, equipment leasing, consumer, wealth management, trust and private banking products and services. The primary footprint of First Midwest’s branch network and other locations is in metropolitan Chicago, southeast Wisconsin, northwest Indiana, central and western Illinois, and eastern Iowa. Visit First Midwest at www.firstmidwest.com.