National City Buys Mid America Bank

By Kane, James | Daily Herald (Arlington Heights, IL), May 2, 2007 | Go to article overview

National City Buys Mid America Bank


Kane, James, Daily Herald (Arlington Heights, IL)


Byline: James Kane Daily Herald Business Editor

The rapid reshaping of the Chicago banking market continued apace Tuesday as National City Corp. announced plans to take over MAF Bancorp for $2.9 billion and move up to the No. 4 market position.

The two banks have roughly similar numbers of offices and deposits in the market. Clarendon Hills-based MAF ranks 11th in Chicago and fifth in Milwaukee in market share, while National City ranks 13th here and isn't in Milwaukee.

MAF, which was founded 85 years ago and operates as Mid America Bank, has $11.1 billion in assets and 82 branches, including $5.7 billion in Chicago area deposits at 58 branches.

MAF shareholders will receive stock worth $56 per share, a 39.5 percent premium over the Monday closing price. The stock rose $14.29 Tuesday, or 35.6 percent, to close at $54.44.

"We got recognition of what the organization is like and what we have built up over the years," said Allen Koranda, MAF chairman and CEO.

The terms value MAF at 19.2 times expected 2007 earnings and 1.8 times book value.

"National City paid a big price," agreed Gerard Cassidy, an analyst at RBC Capital Markets. "We don't have much doubt it will achieve its targeted cost savings. The earnings impact depends on how successfully MAF grows."

MAF has about 2,100 employees, with the 500 headquarters and back office jobs the ones most threatened by consolidation. Koranda said National City's size means that many of those employees are likely to have opportunities to stay on, though sometimes in new jobs.

The merger is the second announced involving a large Chicago- area bank in less than two weeks. On April 23, Bank of America Corp. announced plans to buy LaSalle Bank Corp. from Dutch bank ABN Amro Holding NV for $21 billion. Royal Bank of Scotland PLC, which owns Charter One bank in Chicago, may seek to overturn that deal, however. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

National City Buys Mid America Bank
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.