Old Second Bancorp to continue Chicagoland expansion with bank buy

Aurora, Ill.-based Old Second Bancorp is acquiring Oak Brook, Ill.-based Bancorp Financial and its subsidiary Evergreen Bank in a nearly $200 million cash-and-stock deal. .The $5.6 billion Old Second Bancorp is the holding company for Old Second National Bank. The combined company will be the second largest community bank in the Chicago region, with $7.1 billion in assets, $6 billion in deposits and $5.2 billion in loans. The combined bank will have 56 branches in the Chicagoland area. The deal is expected to close in the third quarter of this year. Chair, President and CEO James Eccher said the deal will allow Old Second Bancorp to both expand in Greater Chicago while adding consumer lending offerings. Evergreen Bank is considered a leader in powersports lending and other consumer lending products. “I could not be more proud of the team, the bank we have built together, and the positive impact we’ve made in the western suburbs of Chicago and the neighborhoods surrounding our oldest branch in Evergreen Park,” added Bancorp Financial Chair Darin Campbell. “… By joining forces with Old Second, we are combining our strengths and shared values to create a better bank, offering enhanced services and opportunities for our employees, customers, key partnerships and the communities we serve.” The deal was announced as M&A was once again off to a sluggish again this year, with only 11 bank acquisitions worth a total of $678.4 million being announced in January. That pace is nearly even with the 12 transactions announced in the first month of 2024, according to S&P Global Market Intelligence. The deal came two months after Old Second Bancorp closed on its acquisition of five branches in the southeast Chicago area from Muncie, Ind.-based First Merchants Corp. for $23 million in cash. Old Second’s acquisition added more than $300 million in deposits and $12 million in loans to its balance sheet. Minneapolis-based Piper Sandler & Co. was financial adviser to Old Second, while Columbia, S.C.-based law firm Nelson Mullins Riley & Scarborough LLP provided legal counsel to the company. New York City-based Keefe, Bruyette & Woods was financial adviser to Bancorp Financial, while Chicago-based law firm Vedder Price P.C. was legal counsel to the company.