Under the terms of the agreement, FirstMerit assumed approximately $1.20bn of deposits associated with First Bank’s 24 Chicago retail branches, including certain commercial deposit relationships, for a premium of 3.5%, or approximately $42m.
FirstMerit also purchased over $300m of loans as well as certain other assets, including premises and equipment, associated with First Bank’s Chicago operations.
Terrance McCarthy, president and CEO of First Banks, said: “The sale of our Chicago franchise represents another important part of our capital optimization initiatives and will generate a regulatory capital benefit of approximately $70m.
“We would like to thank our Chicago based employees for their dedication and hard work and our customers for allowing us the opportunity to serve their business needs. We are confident our customers and employees will be well served by joining the FirstMerit organization as it enters the Chicago market place.”
