Bank of America Acquires LaSalle Bank
Bank of America to surpass JPMorgan Chase in Chicago…
Bank of America Corp, the nation’s second-largest bank after Citigroup, has found another multibillion dollar opportunity to grow its customer base only a year after making a successful $34 billion move into the credit card arena. The move to purchase Chicago-based LaSalle Bank for $21 billion, a top-20 U.S. bank holding company, with $113 billion total assets, from ABN Amro North American Holding was announced Monday.
Bank of America has increased its presence in Chicago from a single financial center to 56 locations in the last four years. Combined with LaSalle’s 141 Chicago area offices, Bank of America will have more than 14 percent of the market share in Chicago and make Bank of America the largest bank in Chicago, the #3 banking market in the United States. Together the LaSalle / Bank of America bank would surpass current market leader JPMorgan Chase & Co. in Chicago and set up a battle with that bank, the nation’s third-largest.
The purchase, which is expected to close later this year, also will mark Bank of America’s retail branch entry in Michigan, where it will have 264 offices and be the largest bank with a 23 percent deposit market share. Bank of America also will acquire LaSalle’s six offices in Indiana. While Chicago has experienced a surge in bank branches, Michigan has suffered economically from a loss of auto industry jobs. The Detroit franchise is going to be a challenge to grow because of the economic backdrop.
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