First Midwest increases scale around Chicago with latest deal
First Midwest Bancorp in Chicago has agreed to buy Bridgeview Bancorp in Illinois.
The $15 billion-asset First Midwest said in a press release Thursday that it will pay $145 million in cash and stock for the $1.2 billion-asset Bridgeview. The deal, which is expected to close in the second quarter, priced Bridgeview at 130% of its tangible book value.
Bridgeview has 13 branches, $1.1 billion in deposits and $800 million in loans.
Another party will buy Bridgeview’s mortgage operation, First Midwest said in a presentation tied to the acquisition.
First Midwest said the deal should be 5% accretive to its 2020 earnings per share. It should take about three years to earn back any dilution to First Midwest's tangible book value.
First Midwest said it plans to cut about 40% of Bridgeview’s annual noninterest expenses.
“Bridgeview is a well-established and trusted financial institution with deep client and community relationships, which we look forward to continuing,” Michael Scudder, First Midwest’s chairman, president and CEO, said in the release.
“Joining forces with Bridgeview brings to all of our clients an expanded footprint across Chicago," Scudder added.