Old Second Bancorp Expands Chicagoland Reach: Branch Acquisition Completed
Friday, Dec 6, 2024 6:23 pm ET
3min read Old Second Bancorp, Inc. (NASDAQ: OSBC), a prominent financial institution headquartered in Aurora, Illinois, has concluded a significant transaction that augments its presence in the Chicagoland area. The bank finalized the acquisition of five Illinois branches from First Merchants Bank, further solidifying its status as a major player in the region's banking sector.
The transaction, which was initially announced in August, involved the purchase of $274.2 million in deposits and approximately $7.5 million in branch-related loans. This strategic move allows Old Second to expand its customer base, strengthen its market position, and enhance operational efficiency. As the newly acquired branches transition to Old Second, the bank expects to benefit from economies of scale and improved branch density.
Old Second's Chairman, President, and CEO, James Eccher, expressed satisfaction with the closing, stating, "We are extremely pleased to close our branch transaction with First Merchants, which will add meaningfully to our existing branch network in the Southeast Chicago market." Eccher further noted that the addition of these branches would allow Old Second to better serve its customers and expand its reach.
The acquisition aligns with Old Second Bancorp's long-term growth strategy and geographic expansion plans. As of September 30, 2024, the bank had approximately $5.67 billion in assets, $4.47 billion in deposits, and $3.99 billion in loans. The acquisition added around $274.2 million in deposits and $7.5 million in branch-related loans, bolstering Old Second's financial position and market share.
As Old Second Bancorp continues to grow, it remains committed to providing exceptional customer service and maintaining a strong presence in the Chicagoland area. The successful completion of this branch transaction underscores the bank's dedication to strategic expansion and enhancing its market position.
In conclusion, Old Second Bancorp's acquisition of five Illinois branches from First Merchants Bank demonstrates the bank's commitment to strategic growth and expansion in the Chicagoland market. By assuming a significant amount of deposits and purchase loans, Old Second strengthens its financial position and market share, further solidifying its status as a major player in the region's banking sector.
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