First Midwest Bank has expanded its presence in Wisconsin by signing an agreement to acquire Bankmanagers, the parent company of Park Bank, one of the oldest banks in the state
US-based First Midwest Bank has signed an agreement to acquire Bankmanagers and its subsidiary Park Bank for $195m (£159m).
Established in Milwaukee in 1915, Park Bank is one of the largest commercial banks in Wisconsin. Through its three full-service branches across Milwaukee and Brookfield, the bank has nearly $1bn (£820m) in total assets, $815m (£668m) in deposits, of which about 85% are core deposits and $700m (£574m) in loans.
First Midwest chairman and CEO Michael Scudder said: “We are extremely excited to welcome Park Bank’s customers and team members to First Midwest. Park Bank is a trusted financial institution with established and experienced bankers who understand the Milwaukee market and the business and personal needs of their customers.
“We look forward to building on this trust and to providing award-winning service to Park’s customers as we further expand into the attractive Milwaukee market.”
As per the merger agreement, a fixed exchange ratio has been arrived at, which includes 29.9675 shares of First Midwest common stock, plus $623.02 (£510) in cash for each share of Bankmanagers common stock.
Deal expected to be closed early next year
Subject to customary regulatory approvals along with the approval of Bankmanagers’ shareholders and the completion of various closing conditions, the deal is anticipated to be closed by next January.
After this, Park Bank president and CEO David Werner will lead the Milwaukee and south-east Wisconsin market for First Midwest.
Werner said: “First Midwest’s mission of helping its customers achieve financial success is aligned with our client-first approach. Joining First Midwest will enable us to both continue and enhance our commitment to relationship-banking as well as offer our customers a broader array of products and services.
“First Midwest is very familiar with the Milwaukee market, and we look forward to becoming part of the First Midwest family.”
The Chicago-based bank claims to have taken several steps to grow its presence in Milwaukee. In January this year, the company acquired Northern Oak Wealth Management, an investment adviser with nearly $850m (£695.m) in assets under management.
In March this year, the bank opened a loan production office to serve the commercial real estate and commercial customers in the state.