Thursday, March 20, 2014 2:20 PM CT
Auto Club Trust FSB to expand in Illinois with National Bancorp deal
By Marla Viray and Timothy Ramos
Dearborn, Mich.-based Auto Club Trust FSB ($66.0 million) agreed to acquire all of the outstanding capital stock of Schaumburg, Ill.-based National Bancorp Inc. ($465.7 million), according to a March 20 news release.
As part of the contemplated deal, National Bancorp will merge into its wholly owned subsidiary, American Midwest Bank, which subsequently will be merged into Auto Club Trust.
Based on data compiled by SNL, offers for bank and thrift targets in the Midwest region between March 20, 2013, and March 20, 2014, averaged 130.23% of book, 136.20% of tangible book and had a median of 15.83x last-12-months earnings, on an aggregate basis.
The deal, which expands Auto Club Trust's banking operations in Illinois, is set to close in the third quarter, subject to required legal and regulatory approvals.
SNL data shows that Auto Club Insurance Association will enter Cook County, Ill., with one branch to be ranked No. 94 with a 0.04% share of approximately $232.77 billion in total market deposits; enter DeKalb County, Ill., with three branches to be ranked fourth with an 11.01% share of approximately $1.20 billion in total market deposits; and will enter Lake County, Ill., with two branches to be ranked No. 25 with a 0.64% share of approximately $16.70 billion in total market deposits.
Auto Club Trust is a subsidiary of Auto Club Insurance Association.
MDI Investments Inc., served as financial adviser to National Bancorp on the deal, with Michael Iannaccone acting as lead banker. Faegre Baker Daniels LLP served as outside legal counsel to National Bancorp. Navigant Capital Advisors served as financial adviser to Auto Club Trust.