Self-Help FCU has entered into a definitive agreement to buy the deposits and the current banking operations of Second Federal Savings and Loan from Lake Forest-based Wintrust Financial.
Wintrust’s subsidiary, Hinsdale Bank, had acquired the deposits and branches of failed Second Federal from the Federal Deposit Insurance Corporation (FDIC) in July. As of September, Second Federal was estimated to have about $161 million in deposits. In addition, Self-Help will acquire Second Federal’s three branches.
Self-Help FCU along with Chicago-based Resurrection Project had bought Second Federal’s loans, most of which were mortgages with Hispanic borrowers in Chicago, from the FDIC.
Terms of the transaction were not being disclosed. The transaction is subject to approval by banking regulators; but is expected to close in the first quarter of 2013
This is the fourth transaction this year where a credit union has bought a bank.
Holy schnikees ... it would appear some bank directors are seeing the benefits of a "not-for-profit but for people" business model.
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