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First Midwest Receives Fed's Nod for Northern States Deal

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Recently, First Midwest Bancorp, Inc announced that it has received the Federal Reserve’s approval for the acquisition of Northern States Financial Corporation and its wholly owned subsidiary, NorStates Bank.

First Midwest had first announced on Jun 7 that it has entered into a definitive agreement with Northern States for acquiring the latter. The deal is expected to be completed by fourth-quarter 2018.

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.

Taking note of this, Michael L. Scudder, First Midwest’s chairman, president and CEO said, “We are pleased to have received Federal Reserve approval for our proposed acquisition of NorStates Bank, which we publicly announced on June 7, 2018. We look forward to welcoming NorStates’ customers and colleagues to First Midwest and to continuing the expansion of our northern Chicagoland footprint.”

Headquartered at Chicago, IL, First Midwest is the parent company of First Midwest Bank. The company offers various commercial, treasury management, equipment leasing, retail, wealth management and trust services, through its various locations in Chicago, Northwest Indiana, Central and Western Illinois, and Eastern Lowa.

On the other hand, NorStates Bank, which is based in Waukegan, IL, operates eight offices in Lake County, IL.

The above-mentioned deal is subject to other regulatory and shareholder approval, and other customary closing conditions.

Shares of First Midwest have gained 29.9% in the past year, outperforming 27.4% growth recorded by the industry.



Currently, First Midwest carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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