WASHINGTON -- Over the opposition of community groups, the Federal Reserve Board last week gave Eastbrook State Bank, Brookfield, Wis., permission to acquire a branch of North Shore Savings Bank, also of Brookfield.
The purchase was opposed by the Fair Lending Coalition in nearby Milwaukee, which argued that the banks owned by Eastbrook's parent, State Financial Services Corp., Hales Corner, Wis., do not adequately serve Milwaukee's minority community.
The Fed said it approved the acquisition because all of State Financial's banks earned "satisfactory" ratings under the Community Reinvestment Act. The Fed added that State Financial had properly defined and served its market.
State Financial, the 20th-largest banking company in Wisconsin, holds $192 million in deposits, including the $8.9 million in deposits acquired from North Shore Savings.