OLNEY, Ill. - In its second announced divestiture in less than a week, Community Financial Corp. said Wednesday that it plans to sell its smallest subsidiary, MidAmerica Bank of St. Clair County, to First National Bank of St. Louis for $3.2 million of cash.
The $862 million-asset First National, of Clayton, Mo., would take on O'Fallon, Ill.-based MidAmerica's $25.4 million of deposits and $30.6 million of assets. Employees and the board of directors would remain in place.
Community Financial announced Nov. 16 that it is selling its $40 million-asset Egyptian State Bank of Carrier Mills, Ill., to Midwest Community Bancshares of Marion for $4.2 million of cash.
Both deals are expected to close in the first quarter; they came after the company announced a $982,000 third-quarter loss and a $1.7 million addition to loan-loss reserves. The loss and the extra reserve resulted from a bad loan connected to an alleged Ponzi scheme.