Buyer says increased deposit-gathering capabilities will aid its expansion. Chicago-based PrivateBank & Trust acquired the deposits and certain assets of Founders Bank, a Chicago-based bank that went into receivership with the FDIC just before the long weekend last week. The PrivateBank says the addition of Founders' $828 million in deposits and about $906 million of its assets (at a discount of $54.5 million) as an aid to its overall expansion plans.

Opportunistic "This transaction is a natural extension of our existing geographic market in Chicago and increases our deposit-gathering capabilities to support the further execution of our [strategic growth plan]," says Kevin Killips, CFO of the PrivateBank's corporate parent PrivateBancorp.

Killips adds that the PrivateBank plans to "be opportunistic in [its subsequent] expansion efforts."

Founders was a business and retail bank with 10 branches in and around Chicago. It was closed by the Illinois Department of Financial and Professional Regulation, handed over to the FDIC and purchased by the PrivateBank in a matter of hours last Thursday afternoon. The branches re-opened after the Fourth of July weekend this week as PrivateBank entities.

PrivateBancorp' subsidiaries had 24 offices in 10 states and more than $10.4 billion in assets on March 31, 2008. They cater to middle-market companies, business owners, executives and wealthy families. -FWR

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