Parkway Bancorp in Harwood Heights, Ill., has agreed to buy Park Bancorp in Chicago.
The $2.2 billion-asset Parkway said it would pay 25 to 35 cents a share for the $154 million-asset Park, based in part on the seller's operating losses. Applying Park's 1.2 million shares outstanding, the deal could be valued between $300,000 and $417,000. It is expected to close in the third quarter.
"The board believes this is a great opportunity for the bank to be a part of an organization with considerably deeper resources, operational scale and a steady stream of core earnings," David Remijas, Park's president and chief executive, said in a press release Thursday.
Park hired Keefe, Bruyette & Woods in 2011 to help it explore its strategic options, including a possible sale. At that time, the company was dealing with a series of challenges, including a cease-and-desist order that required it to provide a capital and business plan for 2011 and 2012.
KBW and Vedder Price advised Park. Kirkland & Ellis advised Parkway.