FirstMerit Bank, a wholly-owned subsidiary of Ohio-based FirstMerit, has acquired the banking operations of Chicago-based Midwest Bank and Trust, the subsidiary bank of Midwest Banc Holdings, through a purchase and assumption agreement with the Federal Deposit and Insurance Corporation (FDIC).
As of March 31, 2010, Midwest Bank and Trust had approximately $2.4bn in deposits and $3.2b in assets. Midwest Bank and Trust’s $2.2bn in loans will be subject to a loss-sharing agreement with the FDIC. FirstMerit Bank expects the acquisition to be accretive to operating earnings per share in 2010.
Midwest Bank and Trust has 26 branches located throughout the Chicago area. Following the acquisition, all the 26 Midwest Bank and Trust branches will reopen as FirstMerit locations. Existing Midwest Bank and Trust checks, debit cards and ATM cards will continue to work, allowing customers to access their money without disruption. The acquisition will increase the number of branches of FirstMerit from 28 to 54 in Chicago.
Paul Greig, president, chairman and CEO of FirstMerit, said: “It will be business as usual at all 26 of the former Midwest Bank and Trust branches as they become a part of FirstMerit. Clients will recognize the familiar faces from Midwest Bank and Trust who will continue to take care of their banking needs.
“The addition of Midwest Bank and Trust to our existing Chicago footprint creates an even stronger platform from which to serve the Chicago market and positions us to continue gaining market share in Chicagoland’s commercial banking space.”