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M & A Market Heats Up: SNL

Jon Winick of Clark Street Capital was quoted in SNL on the M & A market in Chicago.

First Midwest Bancorp announced the acquisition of Great Lakes Financial Resources, a $582 million community bank in the south suburbs.   We thought this acquisition was somewhat noteworthy, as it was the first open-bank acquisition by a non-Wintrust Bank of a bank less than $1 billion in assets.

Jon Winick, president of Clark Street Capital in Chicago, told SNL that First Midwest’s serious interest in M&A following the MB Financial-Taylor deal and Wintrust’s recent buying history “shows that there is competition for community bank franchises” in the Chicago area.

First Midwest said it is paying about 132% of tangible book value for Great Lakes. Winick called that “a modest premium” that appears to constitute a “fair deal” for both sides. The combination of seeing more buyers coming forth and Great Lakes fetching a reasonable price could motivate more sellers to step up to the deal table, he said.

“This shows sellers that there is activity going on,” Winick said.

Stay tuned – consolidation in Chicago is inevitable.

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