Old Second in Illinois to buy Greater Chicago Financial
Old Second Bancorp in Aurora, Ill., has agreed to buy Greater Chicago Financial.
The $2.4 billion-asset Old Second said in a press release Tuesday that it will pay $41.1 million in cash for the parent of the $350.4 million-asset ABC Bank. The deal, which is expected to close in the second quarter, values Greater Chicago at 119% of its tangible book value.
Old Second will acquire and retire $6.3 million of Greater Chicago’s outstanding subordinated debt.
“ABC Bank’s four offices and more than a century of service in the Chicago market are a great complement to our existing footprint,” James Eccher, Old Second’s president and CEO, said in the release.
“This opportunity increases our presence in the city, allows us to leverage our existing capital and will provide customers of ABC Bank with an expanded menu of deposit, lending and financial management products,” Eccher added.
Old Second said it expects the acquisition to be immediately accretive to its earnings per share, excluding merger-related expenses. It should take two years to earn back any dilution to Old Second’s tangible book value.
Greater Chicago was advised by D.A. Davidson and Robbins Salomon & Patt. Old Second was represented by Nelson Mullins Riley & Scarborough.