Parkway Bancorp to Buy Park Bancorp in Chicago

By Paul Davis May 08, 2015, 7:47 a.m. EDT 1 Min Read

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.

For reprint and licensing requests for this article, click here.

Community banking

TRENDING

Consumer banking

20 banks and thrifts with the most assets

The top five banks and thrifts have combined total assets of nearly $13 trillion.

Just now
Regulation and compliance

Turning Fannie Mae into a title insurer won't solve housing challenges

The Biden administration's proposal to waive title insurance requirements for mortgage lenders would undercut an efficient system that offers homebuyers important protections.

By Diane Tomb

1h ago
Payments

Where check fraud is driving businesses to adopt digital payments

A new Citizens Bank survey suggests rising check-fraud incidents are driving middle-market companies to accelerate plans to fully adopt digital payments. But 70% of all businesses will continue to rely on checks for years to come, according to recent data from the Association for Financial Professionals.

By Kate Fitzgerald

2h ago

MORE FROM AMERICAN BANKER

Consumer banking

20 banks and thrifts with the most assets

The top five banks and thrifts have combined total assets of nearly $13 trillion.

Just now
Payments

Where check fraud is driving businesses to adopt digital payments

A new Citizens Bank survey suggests rising check-fraud incidents are driving middle-market companies to accelerate plans to fully adopt digital payments. But 70% of all businesses will continue to rely on checks for years to come, according to recent data from the Association for Financial Professionals.

By Kate Fitzgerald

2h ago
Investment banking

Truist gets an earnings boost from its investment banking unit

After several quarters of slumping investment banking and trading fees, the Charlotte, North Carolina-based company reported a big uptick from that division, which helped compensate for a large decline in net interest income.

By Allissa Kline

April 22
Regulation and compliance

Security, trading, supervision among open issues at Fed, audit finds

The Federal Reserve's Office of the Inspector General says the Fed has yet to fulfill 65 recommendations, and also identified 18 outstanding issues at the Consumer Financial Protection Bureau.

By Kyle Campbell

April 22
Payments

JPMorgan Chase's plan for face and palm payments

The bank will use biometric authentication to streamline checkout in stores starting in 2025. It has already completed internal and external pilots of the technology.

By Robin Arnfield

April 22
Elder fraud

Strangers, family defrauding seniors at an alarming rate: Fincen

Banks reported nearly $27 billion had been tied up in scams or theft against elderly people in a recent 12-month period, according to a report from the U.S. Treasury.

By Carter Pape

April 22