First Bank To Sell Franchise To FirstMerit For $42M

Law360, New York (November 16, 2009, 6:18 PM EST) -- First Banks Inc. subsidiary First Bank plans to sell its Chicago franchise, which holds deposits valued at $1.2 billion, to FirstMerit Bank NA for $42 million as part of continued plans to raise capital in response to the economic downturn.

Akron, Ohio-based FirstMerit will purchase $315 million in loans and take over the premises and operations of First Bank's 24 Chicago branches, as part of the purchase and assumption agreement.

The sale will bring in $75 million of risk-based capital for St. Louis-based First Bank, the...
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