Eager to increase its Chicago-area deposits, Alliance Bancorp announced Wednesday that it has agreed to buy Chicago's Southwest Bancshares for about $90 million in stock.
Alliance, the $1.4 billion-asset parent of Liberty Federal Savings Bank, would exchange 1.198 shares of its stock for each share of Southwest stock. The pooling-of-interests deal is expected to close by June 30. "Southwest is an excellent fit with our strategic priorities," said Kenne P. Bristol, Alliance's president and chief executive officer. "While both companies serve the Chicago market, there is very little geographic overlap."
Southwest, the $375 million-asset parent of Southwest Federal Savings and Loan Association, has six branches in Cook County, Ill. If shareholders and regulators approve the sale, Alliance would grow to 20 offices in Greater Chicago and area deposits would increase 30%, to $1.3 billion.