Chicago-based First Midwest Bancorp Inc. agreed to acquire Milwaukee-based Bankmanagers Corp. and its unit, Park Bank, in a cash-and-stock deal valued at approximately $195 million.
The merger agreement includes a fixed-exchange ratio of 29.9675 shares of First Midwest common stock, plus $623.02 in cash for each Bankmanagers common share. The deal is expected to close by January 2020.
As of June 30, First Midwest had total assets of $17.46 billion and Bankmanagers had total assets of $950.7 million, according to data from S&P Global Market Intelligence. Bankmanagers has $815 million of deposits, of which roughly 85% are core deposits, as well as $700 million of loans, according to a news release.
Park Bank President and CEO David Werner will lead the Milwaukee and southeast Wisconsin market for First Midwest.
S&P Global Market Intelligence calculates the deal is 166.2% of common equity, 167.2% of tangible common equity and 15.1x earnings, on an aggregate basis. The deal value is 20.58% of assets, 23.92% of deposits, and it has a tangible-book-premium-to core-deposits ratio of 10.95%.
S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Aug. 27, 2018, and Aug. 27 averaged 149.70% of book and 151.37% of tangible book and had a median of 19.07x last-12-months-earnings, on an aggregate basis.
First Midwest will enter Milwaukee County, Wis. with four branches to be ranked no. 10 with a share of 1.21% of approximately $44.29 billion in total market deposits. It will also enter Waukesha County, Wis. with one branch to be ranked no. 13 with a share of 2.12% of approximately $12.46 billion in total market deposits.
Sandler O’Neill + Partners LP served as First Midwest's financial adviser in the deal, and Stephens Inc. is Bankmanagers' financial adviser. Chapman and Cutler LLP was First Midwest's transaction counsel, while Barack Ferrazzano Kirschbaum & Nagelberg LLP is Bankmanagers’ transaction counsel.
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