FirstMerit Bank, which over the past year has entered the Chicago market through three acquisitions, said it is continuing to keep its eyes open for deals, but that its main focus right now is integrating its operations.
Earlier this year, Akron-based FirstMerit bought 24 branches in the Chicago area from Missouri-based First Bank. It also recently bought the failed George Washington Savings Bank in a deal brokered by the Federal Deposit Insurance Corp. In May it bought failed Midwest Bank, which has 23 branches in the city and suburbs.
“Until we’re 100 percent confident (about) the seamless transition of Midwest, we’ll not announce any additional transaction,” FirstMerit said during a conference call.
Last week, Itasca-based competitor First Midwest was asked in its earnings conference call whether it was seeing much evidence of FirstMerit in the market.
“Actually, we are not seeing much of FirstMerit so far,” Tom Schwartz, First Midwest Bank chief executive, told analysts. “They’ve taken over an institution that they are going to be spending some time working with, and so therefore we haven’t seen them yet.”
FirstMerit said Tuesday it has successfully integrated its First Bank and George Washington branches and expects to convert the Midwest Bank branches in September. When the Midwest Bank integration is complete, FirstMerit believes it will still have plenty of opportunities to pick up failed banks in the Chicago market. It mentioned a Chicago-area office for the Federal Deposit Insurance Corp. that will help handle failed banks.
“That in and of itself is telling you further activity is forthcoming,” FirstMerit said. FirstMerit said it believes that perhaps the “FDIC process is only 50 percent done in Chicago,” suggesting that many more banks could fail here.
FirstMerit said it believes that perhaps the “FDIC process is only 50 percent done in Chicago,” suggesting that many more banks could fail here.
FirstMerit also noted that there have been dramatic changes in the commercial lending scene in the Chicago market in the past four or five years, since Bank of America bought LaSalle Bank and since Chase has seen an “exodus” of bankers. It said both banks used to have about 70 percent market share in commercial lending in Chicago but now the market is more fragmented.
