Old National currently has a presence in Indiana, Michigan, Wisconsin, and Minnesota, while First Midwest is primarily in the Chicago and Greater Chicago markets. The move will allow Old National Bancorp to fill in a key hole in its branch footprint by entering the Chicago market. Old National Bancorp will be the surviving entity and the board of directors will consist of eight members from each bank, while the executive leadership team will consist of four leaders from each bank. That values First Midwest at roughly 165% of tangible book value (equity minus goodwill and intangible assets). Old National Bancorp, which has nearly $24 billion in assets, is the technical buyer and will purchase First Midwest and its $21 billion in assets in an all-stock deal valued at $2.5 billion, or roughly $21.60 per First Midwest share. Let's take a look at whether this deal can enhance shareholder value. The overall goal is to use scale to spread a smaller amount of expenses over a greater revenue base that will ultimately drive returns, while also giving the bank greater ability to invest in technology. Although technically just a merger, an MOE is when two banks of somewhat similar sizes merge with the plan to really keep both banks somewhat intact, including the management team, board of directors, and various business lines in each bank. Prior to The Motley Fool, he wrote about and covered community and regional banks in New England for The Warren Group.ДЇollow the third merger-of-equals (MOE) this year, Old National Bancorp ( NASDAQ:ONB) is teaming up with First Midwest Bancorp ( NASDAQ:FMBI) to create a $45 billion asset bank in the Midwest. Bram Berkowitz mainly writes in the financials bureau covering the banking sector.

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