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First Midwest lands Bridgeview
Posted on Friday, 07 December 2018 14:41
First Midwest Bancorp is edging into the top ten deposit market share in the Chicago metropolitan statistical area (MSA) by acquiring Bridgeview Bancorp in a cash and stock deal worth USD 145.00 million.
The financial institution will be boosting its presence in the attractive marketplaces of the Cook, DuPage, Kendall, Lake and Will counties, of which the last four are ranked as the top areas in Illinois based on median household income.
It will be getting its hands on an additional USD 1.10 billion of deposits, as of 30th September 2018, to strengthen an existing funding base that is well-positioned for a rising rate environment.
Bridgeview, which fully owns Bridgeview Bank, has USD 1.26 billion in total assets and USD 800.00 million in loans (pro forma as of 30th September 2018 excluding the current mortgage division, which a third-party buyer is acquiring).
The group operates 13 banking offices across greater Chicagoland, including locations in the Bryn Mawr, Edgewater, Garfield Ridge, Lincoln Park, Lincoln Square and Uptown neighbourhoods of the city, as well as several suburbs.
As of 30th June 2018, it had a tier 1 leverage ratio of 10.3 per cent, a tier 1 capital ratio of 13.4 per cent and a total capital ratio of 14.3 per cent.
In terms of valuation multiples, the acquisition equates to 1.3x tangible book value, a core deposit premium of 4.0 per cent and 9.4x earnings, including fully-phased-in after-tax cost savings, for the last 12 months.
First Midwest is one of the largest independent publicly-traded bank holding companies based on assets headquartered in Chicago and the Midwest, with over USD 14.96 billion of assets and USD 11.00 billion of trust assets under management.
Acquisitions in recent years include Northern States Financial in June (USD 83.00 million), Premier Asset Management in February 2017 and Standard Bancshares in January 2017 (USD 580.70 million).
In fact, Bridgeview represents First Midwest’s second-largest purchase by value and total assets.
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