The parent company of Kenosha-based Southport Bank will be bought by the largest privately held bank in Illinois in an all-cash transaction that's expected to close after year end.
First American Bank Corp., based in Elk Grove Village, said in a news release Monday it will acquire Southport Financial Corp., which has total assets of $275 million and operates three branches in the Kenosha area. The deal will allow First American to extend its reach into Wisconsin, where it currently does not have any branches.
Financial terms of the merger — which still needs regulatory and shareholder approval — were not disclosed Monday.
With total assets of $3.8 billion, First American Bank has 49 branches in Chicagoland, plus one in Florida. The Illinois company's CEO Thomas Wells said customer banking "will continue as usual" and that in the coming months, all Southport accounts will be converted to First American Bank accounts.
Southport's CEO Russ Weyers, who joined the firm in January 2015, will remain with the company as Wisconsin regional president for First American Bank.
"Their larger lending limits, their ability to approve SBA loans internally and manage a variety of working capital facilities will allow us to serve more businesses better throughout southeastern Wisconsin," Weyers said about First American Bank in a news release. "Additionally, they have strengths in the residential mortgage and HELOC (home equity line of credit) markets that will help serve our individual borrowers.”
The Southport transaction is the sixth Wisconsin bank merger announced so far in 2017, according to figures from the Wisconsin Bankers Association.
This article was originally published by the Milwaukee Business Journal.