Old Second buying HeritageBanc

Published: 11/8/2007 5:59 PM

Old Second Bancorp Inc. on Thursday said it is buying HeritageBanc Inc. in a half cash and half stock deal valued at $86 million.

Aurora-based Old Second said the deal will give it a 35-branch bank network and $3 billion in assets. Family-owned Old Second has the largest market share in Kane and Kendall counties, according to Old Second President Jim Eccher. It also has branches in DuPage, DeKalb, LaSalle and Will counties.

"This represents a significant move for us into Will County," Eccher said in an interview. "We're heading south."

Employee-owned HeritageBanc is a $350 million asset bank based in Frankfort, with branches in Chicago Heights, Moneka and New Lenox.

Heritage has operated under an Employee Stock Ownership Plan since 1995, in which employees own a majority of the bank's stock and share in its profits, according to its Web site.

HeritageBanc Chief Executive Officer and Chairman John Ladowicz will join Old Second's board of directors and Heritage President Patrick Roe will become an Old Second senior vice president, Old Second officials said.