A more-than-century-old Waukegan bank, with two branches in the city and one in Lindenhurst, plans to merge with a Brookfield financial institution with a goal of adding more business services like commercial real estate lending.
NSTS Bancshares (NSTS), the parent company of North Shore Bank and Trust, established in Waukegan in 1921, plans to complete its merger into Brookfield Bancshares, the owner of the First National Bank of Brookfield, by the end of the year.
When the companies merge, according to a May 12 news release from both companies, North Shore Bank and Trust will continue using the name that has branded it since 1921. It will also continue to operate under its original charter and name as a subsidiary of Brookfield.
North Shore and the First National Bank of Brookfield announced their $73.7 million merger on May 12 in both communities, creating a larger overall bank that can provide more services to people in both Lake County and the Brookfield area.
Phil Richard, the president and CEO of First National Bank of Brookfield, said Tuesday he sees expansion for North Shore in the Waukegan area and Lake County after the merger. Customer service will continue at its current level.
“It’s an opportunity for locally owned banks to grow,” Richard said. “It preserves a community bank, and it’s a good opportunity for us. There is a lot of pressure on community banks. We’ll be able to add some new loan products like commercial real estate loans.”
Stephen Lear, the president and CEO of North Shore, said Tuesday the merger is an opportunity to offer new services to its customers, which it was not able to do in the past. It is an opportunity for a community bank to grow.
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“We’ll be able to enter new markets like commercial real estate lending,” Lear said. “Business banking services will be added to our customer service mix. We will continue to serve our customers like we have for more than 100 years.”
Moving into Lake County is an opportunity to grow two long-established banks — the First National Bank of Brookfield was established in 1962 by local leaders. Richard said it is also community-focused.
“We are excited to join forces with the North Shore team and expand our presence into the Waukegan market,” Richard said in the release. “We look forward to broadening the banking products and services North Shore can offer its clients.”
After the merger, the estimated combined value of the company’s assets will be more than $600 million, according to the release. NTTS currently has assets of $266.6 million. It has “deep and longstanding relationships with businesses and retail customers” in the Waukegan area.
After the completion of the transaction, Lear will remain on the Board of Directors along with one other individual from North Shore’s current board or from the “communities served by North Shore,” according to the release.
When the deal closes, North Shore shareholders will receive $14.28 for each share of stock they own, according to the release. NTTS shares will no longer be publicly traded.
Founded by local residents in 1921, many of them immigrants, North Shore began when 57 people got together to form a savings and loan institution, according to the company website. The first deposit was $106.25, and the first loan was $500. It helped a family buy a home.