US Banker  |  November, 2009

By Glen Fest

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Crain’s Chicago Business reported that a former senior vice president of American Chartered Bank has a deal to acquire the troubled Baytree National Bank & Trust Co.

Michael Flynn, 43, and a group of investors has filed an application with the Federal Reserve to form a bank holding company that would take over Baytree, pledging to inject $12.25 million in new capital into the $211-million asset community bank in suburban Chicago. Baytree has lost $11 million in 2009 mostly due to bad CRE loans, and is under orders from the Office of the Comptroller of the Currency to raise $8 million in fresh capital.

According to the filing, the funds from Flynn’s group, EB Financial Group would provide the bank with $19.1 million in pro forma bank equity. Flynn would step in as CEO, a post currently held by Stanley Calderon, a Chicago banking veteran who came out of retirement in April to join Baytree.

Flynn was a principal at American Chartered until August of this year, and is a former Bank One commercial lender.

Baytree was launched in 2000 by former Wintrust Financial chief executive Howard Adams, who stepped down a year ago and passed away this past summer. His son, Alan, succeeded him but left the post earlier this year in the wake of the OCC enforcement order. 

Calderon, a former Bank One Chicago CEO (prior to the merger with First Chicago/NBD), would remain with the company in another capacity. He is well versed in turnaround efforts – in his previous position, Calderon led Wisconsin-based CIB Marine Bancshares out of hot water with the Federal Reserve and Federal Deposit Insurance Corp. after joining as CEO in 2004.