WASHINGTON - The Fed said it will allow Coal City (Ill.) Corp., to acquire 82.35% of the voting shares of Peterson Bank, Chicago.
The Fed approved the acquisition despite a complaint that data filed by Coal City's subsidiary, Manufacturers Bank, showed disparities in the application and denial rates for low-income, moderate-income, and minority mortgage loan applicants compared with other groups.
"The board recognizes, however, that HMDA data alone provide an incomplete measure of an institution's lending in its community," the Fed said in its Jan. 17 order.
The $439.9 million-deposit holding company has three months to complete the acquisition, the Fed said.
- Compiled by Sara Oppenheim of Medill News Service and Jaret Seiberg