Pan American Bank said Tuesday it has received approval from the FDIC and the Illinois Department of Financial and Professional Regulation to acquire the Bank of Palatine.
The deal is expected to close by early September and allow Melrose Park-based Pan American to increase its assets by about $50 million, executives said.
The Bank of Palatine, founded about 40 years ago, had a suitor last year in STC Capital Bank but that fell through. As the deal is completed, Bank of Palatine President Winn C. Davidson will retire. No other staffing changes are immediately expected for the 40 employees, a spokeswoman said.
Pan American Bank also has offices in Bellwood, Chicago's Sauganash and Little Village neighborhoods, and now in Palatine.
"We feel just as passionately about our customers and community as we did in 1975, which is why we are pleased that Pan American Bank has agreed to continue providing the personal service and attention our loyal customers deserve," Davidson said in a statement. "Pan American Bank is also inheriting an outstanding staff of professionals, all of which makes us optimistic about the future."
With the increasing regulatory requirements and complexity in the industry, Pan American is led by co-CEOs. Nicholas S. Giuliano is the chairman and focuses on the strategic aspects of the business, while Frank C. Cerrone serves as the company president and is more focused on the day-to-day operations.
"This merger provides us the opportunity to expand our high level of service to clients throughout the Northwest suburbs," Giuliano said in a statement. "It also represents the next step in our strategy to continue to grow and expand our banking franchise and our brand."