MB Financial in Chicago is one step closer to acquiring Taylor Capital Group.
The $9.8 billion-asset MB Financial received approval from the Office of the Comptroller of the Currency on Thursday to acquire Taylor Capital in Rosemont, Ill.
The $680 million deal was announced in July 2013 and was initially set to close by June 30. However, the deal was delayed as regulators evaluated an account-opening process tied to a former deposit relationship between the $5.7 billion-asset Taylor and Higher One, a New Haven, Conn., company that provides electronic financial-aid disbursements and payment services.
The evaluation resulted in Taylors Cole Taylor Bank unit entering into a cease-and-desist order with the Federal Reserve Board and state regulators on June 26 over fraudulent practices in violation of section 5 of the Federal Trade Commission Act, which prohibits "unfair or deceptive acts or practices in or affecting commerce."
The Fed approved the deal days after it entered into order with Cole Taylor Bank. With all the regulatory approvals in place, the transaction is expected to close next month.
"I'm pleased that we've received all necessary regulatory approvals for our pending merger with Taylor Capital and Cole Taylor Bank," said Mitchell Feiger, chief executive officer of MB Financial, in a press release on Thursday. "We expect that the combination of our two middle-market, relationship-focused organizations will provide even more for our clients more highly skilled bankers, more locations and more products and services."