Illinois-based Old Second Bancorp, the parent of Old Second National Bank, has agreed to acquire local lender Greater Chicago Financial and its bank subsidiary ABC Bank in an all cash deal worth around $41.1m.

ABC Bank managed total assets of $350.4m, including $246.3m of total loans, at the end of September 2017.

Under the arrangement, Greater Chicago Financial will merge into Old Second Bancorp while ABC Bank will merge into Old Second National Bank.

The deal has received the nod of both companies’ boards of directors. It is anticipated to be completed in the second quarter of 2018, subject to shareholder and regulatory approvals.

Old Second Bancorp president and CEO James Eccher said: “ABC Bank’s four offices and more than a century of service in the Chicago market are a great complement to our existing footprint.  ABC Bank’s track record in meeting the credit needs of its communities is exemplary.

“This opportunity increases our presence in the city, allows us to leverage our existing capital and will provide customers of ABC Bank with an expanded menu of deposit, lending and financial management products.”