George Washington Savings Bank in Orland Park, Illinois was closed by state banking regulators, with Akron, Ohio-based FirstMerit Bank acquiring all the deposits and virtually all of the assets of the 120-year-old bank.
George Washington is the second Chicago-area bank to fail so far this year. Many more, stung by the real estate collapse, are expected to follow.
FirstMerit, whose CEO, Paul Greig, is a longtime Chicago-area banker, is entering the market through the acquisition of the Illinois banking operations of St. Louis-based First Banks. The purchase of the four branches of George Washington provides a quick add-on acquisition.
FirstMerit is assuming nearly all of George Washington's $413 million in assets and its $397 million in deposits. The Federal Deposit Insurance Corp. entered into an agreement to share losses on $324 million of those assets. The FDIC estimated the hit to its fund for bank failures will be $141.4 million.
In addition to south suburban Orland Park, George Washington has branches in Oak Lawn, Western Springs and the north side of Chicago. All four locations will open as branches of FirstMerit on Saturday.
No comments:
Post a Comment