Actual Acquirer:FirstMerit Bank, National Association
Target:Midwest Bank and Trust Company
Deal Type:Government Assisted
Type of Govt Assisted Transaction:Purchase/ Assumption
Date Placed in Conservatorship
Estimated Cost to Reg Agency ($000)
Cost to Reg Agency/ Deposits (%)
Cost to Reg Agency/ Assets (%)
Assets Sold/ Assets (%)
Akron, Ohio.-based FirstMerit Corp. unit FirstMerit Bank NA has agreed to assume all the deposits and to purchase all the assets of Elmwood Park, Ill.-based Midwest Bank and Trust Company. Midwest Bank and Trust Company had total core deposits of approximately $2.0 billion as of March 31, 2010. Midwest Bank and Trust Company is the 72nd FDIC-insured institution to fail in the nation this year, and the eleventh in Illinois.
Franchise Premium/ Deposits (%)
Description of Consideration
FirstMerit Corp. paid the FDIC a premium of 0.4% to assume all of the deposits of Midwest Bank and Trust Company. FirstMerit Corp. also purchased essentially all of the assets of the failed bank and paid a 2.7% premium on acquired assets. As part of this transaction, the FDIC will acquire a value appreciation instrument. This instrument serves as additional consideration for the transaction.