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First Midwest on Acquisition Spree, to Buy Bridgeview Bank

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First Midwest Bancorp (FMBI - Free Report) is continuing with its inorganic growth strategy. The company has announced a deal to acquire Bridgeview Bancorp, Inc. The stock cum cash deal, valued at nearly $145 million, is expected to close in second-quarter 2019.

Michael L. Scudder, Chairman, President and CEO of First Midwest said, “Joining forces with Bridgeview brings to all of our clients an expanded footprint across Chicago and further enhances our position as metro Chicago’s premier commercial bank.”

Transaction Details

Per the terms of the deal, each shareholder of Bridgeview Bancorp will be receiving 0.2767 shares of First Midwest and $1.79 in cash. The deal is still subject to regulatory approvals and consent of Bridgeview Bancorp’s shareholders.

Notably, First Midwest is not acquiring Bridgeview Bancorp’s mortgage division.

As of Sep 30, 2018, Bridgeview Bancorp had $1.2 billion in assets, $1.1 billion in deposits and $800 million in loans (excluding mortgage portfolio). The firm has 13 banking offices across greater Chicagoland. The deal will, thus, further expand First Midwest’s footprint in the region.

Road Ahead

First Midwest is an active acquirer. The company has grown significantly over the years through buyouts.

In November, First Midwest announced an agreement to acquire Northern Oak Wealth Management, Inc. — a registered investment adviser. Earlier in October, the company completed the acquisition of Waukegan, IL-based Northern States Financial Corporation.

With strong balance sheet and liquidity position, First Midwest will likely continue with its inorganic expansion efforts. This has resulted in improved revenues and rise in market share.

Shares of First Midwest have lost 8.9% so far this year compared with 5.3% decline for the industry it belongs to.



Currently, First Midwest carries a Zacks Rank #3 (Hold).

Stocks Worth Considering

Some better-ranked stocks from the finance space are Old Second Bancorp, Inc. (OSBC - Free Report) , Peoples Bancorp Inc. (PEBO - Free Report) and Wintrust Financial Corporation (WTFC - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Over the past 60 days, the Zacks Consensus Estimate for Old Second Bancorp has been revised upward by 2.6% for the current year. The company’s share price has increased nearly 37.9% in the past two years.

Peoples Bancorp’s shares have gained 4.1% in the past two years. Further, its 2018 earnings estimates have remained stable over the past 60 days.

Over the past 60 days, Wintrust Financial has witnessed nearly 1% upward earnings estimate revision for the current year. Its share price has increased 1.6% in the past two years.

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