Continental Illinois Corp. said Thursday it has agreed to buy First National Bank of Western Springs, its third proposed suburban bank purchase to be announced in less than a month.
The acquisition will cost approximately $10.5 million, Continental said. The final price will be determined on the closing date of the sale after it has reviewed the Western Springs bank`s assets, the Loop bank holding company added.
On Feb. 24, Continental disclosed plans to acquire First National Bank of Deerfield for $8.2 million and First Suburban Bank of Olympia Fields for $4.4 million.
All three purchases must be approved by the Federal Reserve Board and other regulatory agencies.
The previous announcement drew fire from several small bankers and the 500-member Independent Community Banks in Illinois (ICBI), which objected to Continental buying other banks while it continues to receive financial help from a federal government agency.
”This may not be the last announcement they will make,” Robert Wingert, ICBI executive director, said Thursday. ”There will probably be a series of similar announcements coming. After all, it was revealed a few months ago that Continental has set up a $175 million fund to make acquisitions.”
Continental has denied that such a fund exists, but officials have said the holding company intends to acquire other banks as part of its effort to rebuild a solid core of consumer deposits. The three banks to be acquired are all located in affluent communities.
William F. O`Meara Jr., chairman and president of the Western Springs bank, said Continental had offered a ”fair price” for the bank.
