First Midwest Bank, a wholly owned subsidiary of First Midwest Bancorp, has acquired the deposits and loans of Palos Bank and Trust Company, in a transaction facilitated by the Federal Deposit Insurance Corporation (FDIC).

First Midwest Bank entered into a loss-share transaction with the FDIC, which will provide First Midwest Bank with protection for a percentage of loan losses.

All the branches of the former Palos Bank and Trust Company, which had approximately $470m in deposits at 30 June 2010, are now operating under the brand of First Midwest Bank.

First Midwest president and CEO Michael Scudder said that with his bank’s complementary branch locations, business lines, and community banking values, Palos Bank and Trust and First Midwest are a great match.

“We look forward to working side-by-side with our new colleagues to add to their already high level of personal service and commitment to the communities they serve,” Scudder said.