Financial Advisor
First Merchants Corporation
Transaction Details
- On August 27, 2024, First Merchants Corporation (“First Merchants Corp.”) (NASDAQ: FRME), the parent company of First Merchants Bank (“First Merchants”), and Old Second Bancorp, Inc. (“Old Second Bancorp”) (NASDAQ: OSBC), the parent company of Old Second National Bank (“Old Second”), jointly announced that First Merchants and Old Second have entered into a Purchase and Assumption Agreement where Old Second will purchase 5 Illinois branch locations in the Southeast Chicago MSA as well as certain branch related loans and deposits from First Merchants
- First Merchants anticipates divesting approximately $304 million in deposits and selling approximately $12 million in branch-related loans
- Old Second will pay a deposit premium of 7.5%, or approximately $23 million, in estimated cash consideration to First Merchants
- Pending regulatory approval, the closing is expected to occur near year-end 2024
Data Sources: Company Filings; S&P Global Market Intelligence.
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(1) Excludes OSBC’s Ottawa branch not located in Chicago MSA.
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