WASHINGTON -- The Federal Reserve Board this week gave CNB Bancshares of Evansville, Ill., permission to acquire King City Federal Savings Bank of Mount Vernon, Ill., and to engage in securities and investment work through a King City subsidiary.
The acquisition would bring CNB's deposit total to $285 million.
The board said CNB is complying with the Community Reinvestment Act, noting that its mortgage lending in low-income and moderate-income areas was running 50% above 1993's numbers.
The central bank approved two other applications on Dec. 5. The Fed gave Mercantile Bancorp. of St. Louis permission to acquire UNSL Financial Corp. of Lebanon, Mo.
The merger makes Mercantile the second-largest bank in the state, with $8 billion of deposits.
Finally, the governors gave the National Bank of Canada, Montreal, permission to establish a new savings association in Pompano Beach, Fla.