First Midwest Bancorp, headquartered in Itasca, Illinois and the parent company of First Midwest Bank, has agreed to buy NI Bancshares, the holding company for The National Bank & Trust Company of Sycamore (NB&T), based in Sycamore, Illinois.
NB&T operates 10 offices in DeKalb, Kane and LaSalle Counties in northern Illinois, and has approximately $680m in total assets, $600m in deposits, of which 89% are core deposits, and $415m in loans.
NB&T also has more than $700m in trust assets under administration.
The merger consideration will be a combination of First Midwest stock and cash, with an overall transaction value of $70m.
First Midwest president and CEO Michael Scudder said: "In addition to expanding our banking presence in the attractive DeKalb County and surrounding markets, this transaction significantly increases our wealth management business, solidifying our position as one of Illinois’ leading wealth management providers."
NI Bancshares Corporation president and CEO Michael Cullen said: "NB&T and First Midwest share a similar culture as well as a shared vision and understanding of community banking, with an emphasis on responding quickly and effectively to meet client needs.
"We look forward to offering our clients a broader array of commercial, retail, wealth management and private banking products and services, and are confident this local partnership will benefit our stockholders, clients, employees and communities."
The acquisition, which is subject to customary regulatory approvals, is anticipated to close during the first quarter of 2016.
Upon closing of the transaction, Mike Cullen will serve as Regional President of DeKalb County for First Midwest.