Old Second Bancorp to Acquire 5 Illinois Branches From First Merchants

09:23 AM EDT, 08/27/2024 (MT Newswires) -- Old Second Bancorp's (OSBC) unit Old Second National Bank signed an agreement with First Merchants (FRME) subsidiary First Merchants Bank to acquire five Illinois branches in the Southeast Chicago MSA and certain branch-related loans and deposits, the parent companies said Tuesday.

The deal, expected to close around year-end subject to regulatory approval, includes approximately $304 million in deposits and $12 million in branch-related loans, according to the joint statement.

Old Second National Bank will pay First Merchants Bank a 7.5% deposit premium, estimated at $23 million. The branches will operate as First Merchants until the transaction closes, and then rebrand to Old Second, the companies said.