The 100-year-old Labe Bank in Chicago has taken pride in being an urban bank that speaks the languages of its immigrant customers.
Now its parent, the $528 million-asset LDF Inc., is buying a second home, in the suburbs. It has agreed to pay $104.9 million in cash, roughly 2.6 times book value, for the $447 million-asset BB&T Bancshares of Bloomingdale, Ill.
BB&T's Bloomingdale Bank and Trust has five branches, in Cook, DuPage, and Kane counties. Labe has three, all in Chicago; the third was opened May 9.
William Ruh, LDF's chairman and chief executive officer, said the acquisition will be just the beginning of Labe's growth. "Our plan is to continue to be opportunistic in the Chicago metropolitan area," he said Friday. "We think this will give us a fabulous base. We'll look to grow organically and through acquisitions."
Mr. Ruh said the deal is part of a strategy put in place last month when Castle Creek Capital LLC of Rancho Santa Fe, Calif., bought 89% of LDF. Castle Creek, a private equity firm led by John M. Eggemeyer 3d, is the largest shareholder in five banking companies around the country.
"Our plan was to expand into the Chicago metropolitan market and not just stay in the city," Mr. Ruh said.
The BB&T deal is expected to close in the fourth quarter. Mathew Gambs, BB&T's president and chief executive, would become LDF's president and Labe Bank's chief operating officer. John G. Eck would remain Labe's president and lead efforts to expand commercial real estate lending in the suburbs.
Mr. Ruh said the deal came about because Mr. Eck learned from Mr. Gambs, whom he knew, that BB&T would soon be up for sale. There was a rival bidder, Mr. Ruh said, but he would not say who.
Mr. Gambs said LDF will use BB&T's experience in commercial and industrial lending and Labe's in commercial real estate lending to offer a full range of products to small businesses in and around Chicago.
"Bloomingdale started focused on manufacturing and C&I. Now we feel like we can service a full variety of small businesses, because John and Labe have done a good job of bringing in developers," Mr. Gambs said.
