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NorthWest Indiana buying Illinois' First Personal in $15.6M deal

Munster, Ind.-based NorthWest Indiana Bancorp is acquiring First Personal Financial Corp. of Orland Park, Ill.

First Personal Bank, which had $145.8 million in assets at the end of 2017, will merge into Northwest Indiana's Peoples Bank SB, which had $924.6 million.

Each First Personal share will be exchanged for 0.1246 Northwest Indiana common share and $6.67 in cash, valuing the deal at $15.6 million, based on the buyer's Feb. 20 closing stock price of $42.80. Stockholders with less than 100 First Personal shares will receive $12.12 per share in cash and no stock.

SNL calculates the deal value to be 134.0% of book and tangible book, on an aggregate basis. It is also 10.70% of assets and 11.99% of deposits. For comparison, SNL valuations for bank and thrift targets in the Midwest between Feb. 20, 2017, and Feb. 20, 2018, averaged 157.49% of book, 163.15% of tangible book and had a median of 18.93x last-12-months earnings, on an aggregate basis.

The deal, which is subject to shareholder and regulatory approvals, is expected to close in the third quarter. If it fails to close, First Personal may pay a $630,000 termination fee.

First Personal CEO Randall Schwartz stays on as Peoples Bank Chicagoland market president after completion. He will also join the bank's advisory board for that market. NorthWest Indiana will enter Cook County, Ill., with three branches, to be ranked No. 75 with a 0.05% share of approximately $282.90 billion in total market deposits.

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