BankFinancial Corporation Announces Definitive Agreement To Acquire Downers Grove National Bank
BURR RIDGE, Ill., Sept. 13, 2010 (GLOBE NEWSWIRE) -- BankFinancial Corporation (Nasdaq:BFIN) ("BankFinancial") announced today the signing of an Agreement and Plan of Merger to acquire DG Bancorp, Inc. and its wholly-owned subsidiary, Downers Grove National Bank. Founded in 1955, Downers Grove National Bank is a privately held community bank with $240 million in assets and $226 million in deposits as of June 30, 2010. Downers Grove National Bank has three banking offices located in Downers Grove, Westmont and Woodridge, Illinois.
BankFinancial will purchase DG Bancorp, Inc. for approximately $2.0 million in cash. The purchase price is subject to various closing adjustments that could reduce the purchase price to $1.3 million or increase the purchase price to $5.2 million depending on DG Bancorp's expense management and the performance and resolution of certain identified credit exposures. BankFinancial expects the transaction to be accretive to earnings within the first year, excluding the impact of transaction related expenses.
In making the announcement, BankFinancial Chairman and CEO F. Morgan Gasior said, "Downers Grove National Bank is a well-established community bank with outstanding customers, employees, and banking offices that complement our branch network very well. We are enthusiastic about extending our products and services to customers in Downers Grove and southeastern DuPage County."James F. Russ, Sr., Chairman and CEO of Downers Grove National Bank added, "We're pleased to be joining BankFinancial. We see the relationship as a very good fit. It will allow us to offer greater convenience and a broader range of products and services to our customers, and BankFinancial's community banking philosophy will allow us to continue, and even improve upon, our longstanding commitment to customer convenience and service." The transaction is subject to customary closing conditions, including the receipt of all necessary approvals from regulatory authorities, and is expected to close by the first quarter of 2011. Downers Grove National Bank will be merged into BankFinancial, F.S.B., a wholly owned subsidiary of BankFinancial, immediately following the completion of the transaction.
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