The Midwest Gets Another Major Bank

In a press release published on June 1, Old National and First Midwest announced that they have signed a $6.5 billion all-stock merger agreement. The new bank will have $45 billion in joint assets and will be under the leadership of combined executive teams. 

It’s anticipated that the merger will be completed by the end of 2021 or at the beginning of 2022. From then on, the organization will operate under the names Old National Bancorp and Old National Bank. 

Seeing as there are still some details that Old National and First Midwest need to work out, it’s uncertain whether the platforms or logins customers use to access their online savings accounts and similar services will be affected in the future. The same is true for branch locations.

Currently, there are 274 branches between the two banks, but that number may change. However, this is unlikely as the service areas of the two institutions don’t overlap. Stakeholders will be duly notified if any such decisions are made.

The boards of directors of both companies unanimously approved the merger. Once the deal has been finalized, the board of directors of the combined organization will consist of eight directors from Old National and eight directors from First Midwest.

“First Midwest and Old National are two relationship-focused financial institutions that have rich histories, extremely compatible cultures, and a shared commitment to helping our clients achieve financial success,” said Michael Scudder, Chairman and Chief Executive Officer at First Midwest.

The newly formed bank will be among the largest banks based in the Midwest. Due to its increased capabilities, the company will be able to provide better banking services to both its old and new customers. It’s expected that shareholders will greatly benefit from this merger as well.

“First Midwest’s leadership team and colleagues not only mirror the Old National mission, values, and culture, they also offer exceptional consumer and commercial banking services,” said Jim Ryan, the Chairman and Chief Executive Officer at Old National.