MB Financial closes some Benchmark locations

MB Financial Bank said Monday it intends to close and consolidate some of the five Benchmark Bank locations in the next 30 to 60 days.

While the 110-year-old Benchmark reopened its locations over the weekend as branches of MB Financial, the new owners aim to keep open only the Aurora headquarters and Seneca locations. The St. Charles Benchmark bank will close and merge operations with MB's current bank about 2 miles away at 2607 Lincoln Highway. Benchmark's Ransom and Verona locations will close and merge operations into Benchmark's Seneca site, said MB Financial spokeswoman Karen Perlman.

"All employees are being interviewed for positions at MB Financial," said Perlman.

About 50 Benchmark employees have been affected, but Perlman said hiring decisions are likely to be made by the end of this month.

Benchmark's President John Medernach did not return calls.

The long-ailing Benchmark was closed Friday by the Illinois Department of Financial and Professional Regulation's Division of Banking, then assigned to the FDIC as its receiver. It was then immediately acquired by MB Financial, which assumed about $179 million of Benchmark's deposits, but not $4 million of brokered deposits.

In August, Benchmark shareholders voted to issue and sell 10.4 million shares of common stock to a local group of investors.

In September, Benchmark sent about 300 letters to customers that said it was seeking recapitalization and would suspend advances on all existing credit lines, including new money advances on existing home equity loans and overdraft lines of credit.

Medernach told the Daily Herald at that time that the bank was seeking about $8 million in additional capital. Medernach declined at that time to release further details.

Benchmark was the 20th bank to fail in Illinois this year, according to the FDIC.