First Midwest, First Financial and MidSouth Complete Deals

First Midwest Bancorp Inc. in Itasca, Ill., First Financial Bancorp in Cincinnati and MidSouth Bancorp Inc. in Lafayette, La., have finalized separate acquisitions.

Old National Bank of Evansville, Ind., said Monday that it completed its sale of $185 million of deposits from four branches of the failed Integra Bank in the Chicago area to First Midwest. The $8.2 billion-asset First Midwest also took over a facility in Plainfield, Ill.

The loan accounts from these branches will remain with the $8.9 billion-asset Old National as part of its loss-share agreement with the Federal Deposit Insurance Corp. Old National acquired all 52 branches of Integra Bank in July in an FDIC-assisted transaction.

The $6.3 billion-asset First Financial completed its acquisition of 22 branches in Indiana and the associated deposits from the $13.7 billion-asset Flagstar Bancorp of Troy, Mich.

Flagstar's chairman and chief executive, Joseph P. Campanelli, said Friday in a press release that his company sold about $340 million in consumer and commercial deposits and about $120 million of government and municipal deposits. Campanelli anticipates a $22 million gain based on the estimated deposit premium of $22.5 million, he says.

First Financial paid a premium for the consumer and commercial deposits it assumed plus the net book value of the real estate and personal assets associated with the branches. It also took on the existing leases for 14 of the branches.

Flagstar has worked to focus on its core retail and commercial banking in Michigan and expanding its New England commercial banking division. In July, it said it was selling all 27 of its Atlanta branches to PNC Financial Services Group Inc.

Meanwhile, the $1.2 billion-asset MidSouth said Friday in a press release that it has completed its acquisition of a Beacon Federal Bancorp Inc. branch in Tyler, Texas. The Beacon Federal branch is now operating as a MidSouth Bank branch. As part of the deal MidSouth acquired $24 million in loans and assumed $80 million in deposits.

C.R. Cloutier, MidSouth president and CEO, said that the bank continues to look for opportunities in Texas.

"We are excited to acquire a branch in the Tyler market, a market that has a long history associated with the oilfield service industry, a key industry for MidSouth," Cloutier said.

The $1.1 billion-asset Beacon Federal in East Syracuse, N.Y., had previously said the sale would allow the company to focus on New York, Massachusetts and Tennessee.

This year MidSouth has also purchased the assets and deposits of First Louisiana National Bank in Breaux Bridge, La., and five branches from Jefferson Bank in Dallas.