What bank is First Midwest Bank merging with?

Old National Bancorp and First Midwest Bancorp Inc. announced Wednesday they have completed their all-stock "merger of equals" that was announced on June 1.

The combined company creates the sixth largest commercial bank headquartered in the Midwest based on assets, with more than $46 billion of combined assets and $34 billion of assets under management, a news release said.

“The completion of this partnership marks an historic milestone for both Old National and First Midwest,” Jim Ryan, CEO of Old National, said in a release. “We are excited to bring the promise of our two companies together and leverage our talent, expertise and increased scale and market presence to benefit our clients, team members, communities and shareholders.”

“This combination makes us one of the Midwest’s largest commercial banks and positions us well for continued expansion, investment, and innovation in talent, capabilities and services,” Mike Scudder, executive chairman of the combined company, said in the release. “We look forward to building upon the strong legacy of exceptional relationship banking and community engagement that both banks have developed over several decades to create even more opportunities to help our clients achieve financial success.”

The combined organization will operate under the Old National Bancorp and Old National Bank names, with dual headquarters in Evansville and Chicago. Clients will continue to be served through their respective Old National or First Midwest branches, websites, mobile apps, financial advisers and relationship managers until the system conversion is complete, which is anticipated in July 2022. Clients can continue to use the full ATM network of both banks for cash withdrawals at no charge.

At the effective time of the merger on Feb. 15, each share of First Midwest common stock was converted into the right to receive 1.1336 shares of Old National common stock, with First Midwest stockholders receiving cash in lieu of fractional shares. Former First Midwest stockholders collectively represent approximately 44% of the combined company.

Shares of First Midwest ceased trading after the closing of the NASDAQ stock market on Feb. 15. The combined company’s common shares will trade on NASDAQ under ticker symbol “ONB.”

In addition, each share of 7% series A, fixed-rate, non-cumulative, perpetual preferred stock of First Midwest outstanding and each share of 7% series C, fixed-rate, non-cumulative, perpetual preferred stock of First Midwest was converted, respectively, into the right to receive one share of a newly created series A and series C of preferred stock of Old National at the effective time of the merger. Each outstanding First Midwest depositary share representing a 1/40th interest in a share of the applicable series of First Midwest preferred stock was converted into an Old National depositary share representing a 1/40th interest in a share of the applicable series of the Old National preferred stock.

Board of directors

The combined company’s board of directors consists of 16 members with eight directors from Old National and eight from First Midwest:

  • Mike Scudder, executive chairman.
  • Becky Skillman, lead independent director.
  • Barbara Boigegrain.
  • Tom Brown.
  • Kathryn Hayley.
  • Pete Henseler.
  • Dan Hermann.
  • Ryan Kitchell.
  • Austin Ramirez.
  • Ellen Rudnick.
  • Jim Ryan.
  • Tom Salmon.
  • Michael Small.
  • Derrick Stewart.
  • Steve Van Ardsell.
  • Kathy White.

Can allegations of redlining sink a bank merger?

Not for Evansville, Indiana-based Old National Bancorp’s acquisition of Chicago-based First Midwest Bancorp, which the Federal Reserve today approved.

The merger will create a bank with $45.8 billion in combined assets, the Federal Reserve said. The new organization will be the sixth-largest bank headquartered in the Midwest, Old National said when it announced the transaction. The acquisition is Old National’s ninth in as many years.

Old National did not respond to a request for comment, but a spokesperson for First Midwest provided statements from both companies.

“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,” said Old National CEO Jim Ryan.

First Midwest CEO Mike Scudder, who will be Old National’s chairman, said the merger would “further set us apart as a market leader across the Midwest.”


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First announced in June, Old National said it expected the $6.5 billion acquisition of First Midwest to close in “late 2021 or early 2022,” but it first required regulators’ blessing.

Fair housing advocacy organizations, with limited resources, often seize such a moment to look into a bank’s fair housing practices. A redlining allegation has the potential to force a bank to change its practices to avoid reputational harm, and potentially spoiling a merger.

In October, the Fair Housing Center of Central Indiana filed a complaint against Old National, ​​alleging that the bank carried out redlining in its mortgage lending practices.

The complaint alleged that Old National Bank structured its business to avoid extending mortgage credit to Black residents and neighborhoods in the Indianapolis area, and that the bank made many fewer loans to Black applicants than its peers did.

FHCCI alleged that of the 2,250 mortgage loans made by Old National from 2019 to 2020, only 37 were to Black borrowers across the entire Indianapolis market.

The FHCCI also alleged that Old National deliberately closed branches in Black neighborhoods and opened them in White neighborhoods, which is considered redlining and a breach of the federal Fair Housing Act.

Per the Federal Reserve’s order approving the acquisition, it considered the allegations of redlining, because they were brought up in a comment from the FHCCI opposing the merger.

But in December, Old National Bank settled to resolve the allegations, and FHCCI withdrew its opposition to the merger.

As part of the settlement, Old National agreed to open two branch offices in majority-Black census tracts, pay a $1.1 million loan subsidy fund, and provide substantial support for community development corporations and community organizations based and working in Indianapolis’ Black neighborhoods.

Federal and state regulators have increased their focus on anti-redlining enforcement in recent months. In October, the Department of Justice, Office of the Comptroller of the Currency and the Consumer Finance Protection Bureau announced a joint effort to combat modern-day redlining.

The agencies also announced a settlement with Trustmark National Bank, a retail bank based in Jackson, Mississippi, to resolve allegations that Trustmark engaged in redlining in Memphis, Tennessee.

Under the terms of the settlement, the bank agreed to pay $3.85 million in a loan subsidy fund to increase credit opportunities for residents of predominantly Black and Hispanic areas in the Memphis area, pay $400,000 to develop community partnerships and $200,000 per year for advertising and outreach.

Editor’s note: This story was updated to include comments from First Midwest and Old National.

Who did First Midwest Bank merge with?

She and Kersta Ketchum expressed their frustration after their bank, First Midwest Bank, merged with Old National Bank.

Will First Midwest Bank change their name?

First Midwest Bank branches will be rebranded as Old National Bank, which will end up with a footprint in six of the largest Midwestern metros. Old National will have dual headquarters in both Evansville and Chicago and eight directors from each bank on its new board of directors.

Who bought out Old National Bank?

Old National's merger with First Midwest created an institution with more than $46 billion in combined assets. During its second-quarter earnings report on Tuesday, bank officials cited a 17% increase in commercial loan activity, as well as new opportunities in the Chicago area stemming from the merger.

What happened to Old National Bank?

In 2021, Old National merged with First Midwest Bancorp, combining the companies assets, retaining the Old National name and maintaining headquarters in Chicago and Evansville.