This regional bank stock is up 40% on Monday: find out why
On Monday, a regional bank stock saw a significant increase of 40%. This sudden surge in stock price has left many investors wondering what caused this sudden spike. The regional bank in question is none other than First Midwest Bancorp Inc. (FMBI). The bank, which is headquartered in Chicago, has been in operation for over 80 years and has a strong presence in the Midwest region of the United States. So, what caused the sudden increase in stock price? The answer lies in the recent announcement of a merger between First Midwest Bancorp Inc. and Old National Bancorp (ONB). The two banks have agreed to merge in an all-stock transaction, which will create a regional bank with assets of over $45 billion. The merger is expected to be completed in the late third quarter or early fourth quarter of 2021, pending regulatory approval. The combined bank will operate under the Old National Bancorp name and will be headquartered in Evansville, Indiana. Investors have reacted positively to the news of the merger, as it is expected to create significant value for shareholders. The combined bank will have a larger geographic footprint, which will allow it to better serve customers in the Midwest region. Additionally, the merger is expected to result in cost savings and operational efficiencies, which will benefit both the bank and its customers. The CEO of First Midwest Bancorp Inc., Michael Scudder, expressed his excitement about the merger, stating that it will create a powerful combination that will be well-positioned to serve customers and create value for shareholders. Overall, the merger between First Midwest Bancorp Inc. and Old National Bancorp is a significant development in the regional banking industry. The combined bank will be a major player in the Midwest region, and investors are clearly optimistic about its potential. While there may be some uncertainty in the short term, the long-term prospects for the combined bank look promising.