First Midwest Bancorp in Itasca, Ill., has agreed to buy Standard Bancshares in Hickory Hills, Ill.
The $10.7 billion-asset First Midwest said in a press release late Tuesday that it will pay $365 million in stock for the $2.5 billion-asset Standard. The deal, which is expected to close by early next year, values Standard at 135% of its tangible book value.
Standard becomes the latest Chicago-area mainstay to sell itself. The company has 35 branches, $1.8 billion in loans and $2.1 billion in deposits.
"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," Michael Scudder, First Midwest's president and chief executive, said in the release. "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."
First Midwest said it plans to cut Standard's annual noninterest expense by 40%. The company also expects to incur $34.5 million in pretax merger-related expenses.
Lawrence Kelley, Standard's president and chief executive, will become market president for First Midwest's south metro Chicago and northwest Indiana markets. He will also join the board of First Midwest's bank.
PrivateBancorp in Chicago had also been interested in Standard, according to a
Standard's sale adds to a growing list of big deals in the Midwest, including the merger of MB Financial and American Chartered,
