First Midwest Bancorp in Itasca, Ill., has bought Premier Asset Management in Chicago.
The $14 billion-asset First Midwest did not disclose how much it paid for Premier, which has about $550 million of assets under management.
The deal represents a change of pace for First Midwest, which has typically relied on organic growth to expand in wealth management, said James Roolf, a senior vice president and the company. Roolf said First Midwest would consider additional deals as opportunities arise.
Premier, founded in 2001, will operate as a separate unit within First Midwest’s financial and wealth management group.
"When you’re dealing with wealth management clients who’ve dealt with a specific company for a long period, it’s important that they understand the stability of the organization,” Roolf said.
Wealth management generated $33.1 million in income for First Midwest last year, representing a 13% increase from a year earlier.