Illinois-based First Midwest Bancorp, the parent of First Midwest Bank, has agreed to acquire Standard Bancshares, the parent of Standard Bank and Trust Company in a stock deal worth about $365m.
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The deal involves a fixed exchange ratio of 0.4350 shares of First Midwest common stock for each share of Standard common stock.
The transaction is expected to close in late 2016 or early 2017, subject to regulatory and shareholers’ approvals.
Following completion of acquisition, Standard president and CEO Lawrence Kelley will assume the role of market president for First Midwest in its south metro Chicago and northwest Indiana markets. He will also join First Midwest Bank’s board of directors.
First Midwest president and CEO Michael Scudder said: "This combination further positions us as metro Chicago’s premier commercial bank, strengthens our leading south metro market presence and continues our expansion into northwest Indiana.
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By GlobalData"At the same time, Standard’s strong commercial franchise reinforces our commitment to relationship-based business banking as well as adds talented leadership and depth to our collective teams. We greatly look forward to better serving our collective clients through a full range of quality products and services offered through a more robust banking network."
Hickory Hills-based Standard has 35 banking offices in the southwest Chicago suburbs and adjacent markets in northwest Indiana. The company manages about $2.5bn in total assets with $2.1bn in deposits.
