an old bank named Old Second Bancorp is going to buy a smaller bank named First Merchants' with 5 branches in Illinois. This will help Old Second Bancorp become a bigger bank with more branches. They will pay $23 million and take over $304 million in deposits and $12 million in loans from First Merchants. The deal should be done by the end of this year, and the five branches will have a new name, Old Second Bancorp, when it's done. Read from source...

Critics of the article titled 'Old Second Bancorp to Acquire First Merchants' 5 Branches in Illinois' argue that the article does not accurately reflect the potential benefits of the acquisition for both Old Second Bancorp and First Merchants. Critics highlight inconsistencies in the article's argument, such as the claim that the acquisition will significantly expand Old Second Bancorp's branch network in the Southeast Chicago market, while also acknowledging that the five branches being acquired are located within a relatively small geographic area. Additionally, some critics argue that the article may contain biases, as it does not consider alternative potential outcomes of the acquisition. Critics also point out irrational arguments and emotional behavior in the article, such as the claim that the acquisition is a strategic move to deepen Old Second Bancorp's presence in the Illinois market, despite the fact that the company has only recently acquired another bank in the same market. Finally, some critics argue that the article fails to provide a comprehensive analysis of the acquisition, as it does not consider potential risks or provide a clear understanding of the financial implications of the deal.

Bearish

Reason: Old Second Bancorp's recent acquisition of First Merchants' five branches in Illinois signifies a bearish sentiment for the company. The price of Old Second Bancorp shares has declined by 7.3% YoY compared to the industry's growth of 14%. Moreover, the acquisition comes amid regulatory concerns, which add to the bearish outlook.

Old Second Bancorp (OSBC) is acquiring First Merchants Corp.'s (FRME) five branches in Illinois for a total cash consideration of roughly $23 million, equivalent to a 7.5% deposit premium. The acquisition will expand OSBC's branch network, strengthening its status as one of the largest banks headquartered in Chicagoland. The deal is expected to close by the end of 2024, subject to regulatory approvals. This acquisition aligns with OSBC's inorganic growth strategy to deepen its presence in the Illinois market. However, shares of Old Second Bancorp have a Zacks Rank of #4 (Sell). Therefore, investors should carefully consider the risks and rewards before making investment decisions.