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First Midwest Bancorp Undervalued, But Without Much Agency To Create Value

Aug. 03, 2021 7:00 AM ETFirst Midwest Bancorp, Inc. (FMBI)ONB1 Comment
Stephen Simpson profile picture
Stephen Simpson


  • First Midwest had a better second quarter performance than its merger partner Old National, with better performance on a pre-provision basis, though with a bit less loan growth improvement.
  • First Midwest has built an arguably underrated commercial lending platform, and Old National should have some attractive opportunities to leverage that across a wider footprint and with underused deposits.
  • The fates of FMBI and ONB are tied together now, but FMBI looks very slightly cheaper and would be the bank I'd rather own if the deal falls apart.

Fall Colors in Lincoln Park - Chicago
Gian Lorenzo Ferretti Photography/E+ via Getty Images

The announcement of the merger of equals between Old National (ONB) and First Midwest Bancorp (NASDAQ:FMBI) took a lot of analysts and investors by surprise, as most expected these

This article was written by

Stephen Simpson profile picture
Stephen Simpson is a freelance financial writer and investor. Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds); now a semi-retired raccoon rancher. That last part isn't entirely true. Probably.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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