First Midwest making big Milwaukee push with Park Bank purchase
First Midwest Bancorp in Chicago has agreed to buy Bankmanagers Corp. in Milwaukee.
The $17.5 billion-asset First Midwest said in a press release Wednesday that it will pay $195 million in cash and stock for the parent of the $1 billion-asset Park Bank. The deal is expected to close by January.
Park, founded in 1915, has $815 million of deposits and $700 million in loans. About 85% of Park’s deposits are core deposits.
Park “is a trusted financial institution with established and experienced bankers who understand the Milwaukee market and the business and personal needs of their customers,” Michael Scudder, First Midwest’s chairman and CEO, said in the release.
First Midwest has been slowly expanding in Milwaukee. In January, it bought Northern Oak Wealth Management, an investment advisor with $850 million of assets under management. In March, First Midwest opened a loan production office in the city.
David Werner, Park’s president and CEO, will oversee the Milwaukee and southeast Wisconsin market for First Midwest.
Sandler O’Neill and Chapman & Cutler advised First Midwest; Stephens Inc. and Barack Ferrazzano Kirschbaum & Nagelberg advised Bankmanagers.