Continuing with its efforts to expand in the greater Chicagoland area, First Midwest Bancorp, Inc.FMBI has agreed to acquire Northern States Financial Corporation, the holding company for NorStates Bank. The deal, which is expected to be completed by fourth-quarter 2018, is subject to regulatory and shareholder approval, and other customary closing conditions.
Based on First Midwest's closing price as of Jun 5, 2018, the deal value stands at $91.0 million. Per the agreement, each share of Northern States will be exchanged for 0.0369 shares of First Midwest's common stock, subject to certain adjustments.
Headquartered in Chicago, IL, First Midwest is the parent company of First Midwest Bank. Through locations in Chicago, northwest Indiana, central and western Illinois, and eastern Iowa, the company offers various commercial, treasury management, equipment leasing, retail, wealth management and trust services.
On the other hand, NorStates Bank, which is based in Waukegan, IL, operates eight offices in Lake County, IL.
Michael L. Scudder, First Midwest's chairman, president and CEO said, "We are very excited to welcome NorStates Bank to First Midwest and build on the strong relationships that NorStates has with its customers. This combination continues our expansion in the greater Chicagoland area and enhances our presence in Lake County where we have long-standing, deep roots."
Scott M. Yelvington, president and CEO of Northern States stated, "We are extremely pleased to partner with First Midwest. Like First Midwest, we have a strong commitment to relationship banking, personalized customer service and involvement in the communities we serve. We greatly look forward to offering our customers the broader array of financial products and services that First Midwest provides."
Shares of First Midwest have gained 10.9% in the past year, underperforming 18.6% growth recorded by the industry .
Currently, First Midwest carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the same space are Associated Banc-Corp ASB , Civista Bancshares, Inc. CIVB and Commerce Bancshares, Inc. CBSH . Each of these stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Associated Banc-Corp have gained 13.4% over the past 12 months. Its Zacks Consensus Estimate for the current-year earnings has moved up 10.7% over the last 60 days.
Shares of Civista Bancshares have gained 23.8% in the past year. Its Zacks Consensus Estimate for the current year has been revised 8.8% upward over the last 60 days.
Shares of Commerce Bancshares have gained 23.1% over the past 12 months. Its Zacks Consensus Estimate for the current-year earnings has climbed 7.1% upward over the last 60 days.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportCommerce Bancshares, Inc. (CBSH): Free Stock Analysis ReportFirst Midwest Bancorp, Inc. (FMBI): Free Stock Analysis ReportAssociated Banc-Corp (ASB): Free Stock Analysis ReportCivista Bancshares, Inc. (CIVB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research