First Midwest plans more expansion after Standard acquisition
First Midwest Bancorp's top executive said Wednesday that the Itasca-based bank plans further expansion after it announced its latest $365 million deal to acquire Hickory Hills-based Standard Bancshares.
That overall expansion plan will include growing its operational centers in Gurnee and Joliet, each with about 100 to 150 workers, that focus on customer service.
"Acquisitions are not a strategy per se, but they are an accelerator of our strategy," said First Midwest President and CEO Michael L. Scudder during an interview Wednesday with the Daily Herald.
On Tuesday, First Midwest announced that it would acquire the parent of Standard Bank and Trust, which has total assets of about $2.5 billion. With those Standard assets, First Midwest will have total assets of about $13.3 billion when the acquisition closes later this year.
After the close, Standard Bank will be renamed First Midwest Bank.
First Midwest has acquired 10 other banks since 2006, including Waukegan Savings Bank in 2012, People's Bank in Arlington Heights in 2015 and Sycamore-based NI Bancshares earlier this year. Scudder said his bank's "passion for success" is also retaining and attracting the talented colleagues who will help the bank expand and do more lending.
"We have significant capital and infrastructure to continue to grow," Scudder said.
First Midwest works with businesses and retail clients by lending and managing their cash. First Midwest is the third largest in the Chicago market, behind Northern Trust and BMO Harris, for managing wealth for individuals.
Now, First Midwest plans to reach beyond its Illinois, Indiana and Iowa footprint with possible expansion in Southwest Wisconsin and elsewhere, Scudder said.
"We are looking for opportunities to grow and expand in our adjacent markets," he said.
Besides growing assets, First Midwest has about 2,100 workers and could add another 500 with Standard Bank as well.
Also, Lawrence P. Kelley, Standard's president and CEO, will remain and serve as market president for First Midwest in its South metro Chicago and Northwest Indiana markets.
"As part of the First Midwest team, we will continue to provide the highly personalized experience our clients have come to expect while providing our clients with an expanded suite of products and services," Kelley said in a statement. "This partnership will be a long-term benefit to our shareholders, clients and the communities we serve."