Signature Bank, a 20-year-old commercial bank serving mostly middle-market businesses in the Chicago area, is merging with New York-based Esquire Bank to expand the reach and offerings for both.
Under the terms of the agreement, announced Thursday, Esquire Financial is acquiring Signature in an all-stock transaction valued at $348 million. The combined company is expected to have about $4.8 billion in assets.
Founded in 2006, Rosemont-based Signature has two Chicago branches and about $2 billion in assets. It will continue under the same banner and leadership after the merger, which is expected to close in the third quarter.
“Signature Bank is going to be a division of Esquire bank, and we’re going to continue to grow our presence here in the Chicago market,” Mick O’Rourke, co-founder and CEO of Signature Bank, told the Tribune.
A merger of banks with similar lineage and scale, Esquire was also founded in 2006. Headquartered on Long Island, Esquire has branches in Jericho, New York, and Los Angeles, and focuses on the litigation industry, as well as commercial and retail customers on both coasts.
Esquire initiated merger talks with Signature, which also has a strong litigation industry portfolio, seeking to get a foothold in the Midwest, O’Rourke said.
“This was a strategic opportunity for Esquire,” said O’Rourke, 57. “They wanted to enter the Chicago market and saw that we can continue to grow the legal market.”
In a news release, Esquire CEO Andrew Sagliocca cited continued expansion of its national litigation platform as a major driver behind the deal.
“Strategically, the combination brings together two institutions with highly complementary commercial banking operations and capabilities,” Sagliocca said.
Signature, whose client roster includes law firms, medical practices, manufacturers, technology firms and professional service firms, has a downtown branch on Wacker Drive and one on Devon Avenue in Edison Park. The bank has 115 employees, most based in Chicago, O’Rourke said.
While the Chicago retail footprint isn’t expected to grow, O’Rourke believes the merger of relative equals will help both banks continue to build business.
“It’s two 20-year-old banks getting together and growing,” O’Rourke said. “It gives us additional capabilities with regard to supporting our clients.”
rchannick@chicagotribune.com
