Diamond Bank to acquire DGN

dgnThe Chicago Tribune reports that Chicago-based Diamond Bank will acquire Downers Grove National Bank in a cash transaction.  No word on the purchase price.

Founded in 1955, the privately held Downers Grove bank has assets of $266.9 million, according to the Tribune.

With branches in Woodridge and Westmont as well as locally,  Diamond reportedly sees DGN as an entree into DuPage County. It also has branches in Elmhurst, Schaumburg and Skokie.

The Tribune reports that DGN has faced struggles similar to others in the industry over the past year:

Downers Grove lost $349,000 in the first half, compared with a profit of $900,000 in the year-ago period. Its percentage of bad loans has risen to 4.84 percent from 2.34 percent, but as of June 30 it was well capitalized by several measures.

Chairman and CEO James Russ Sr., a 36-year veteran of DGN, was quoted as saying the bank had sought a buyer in part to raise capital.  It will continue to be known as Downers Grove National Bank.

Diamond Bank is described on its Web site as “an established and innovative institution dedicated to providing a superior level of highly individualized service.”

“With a focus on individuals and organizations with an entrepreneurial spirit, our clients and their businesses come in all shapes and sizes and have no age boundaries,” according to the Web site.

Diamond offers “an extensive selection of financial services, including deposit and lending solutions as well as a comprehensive mortgage division.”

It also offers  “37,000 surcharge-free ATMs nationwide.”

8 Responses to “Diamond Bank to acquire DGN”
  1. Earl McGuire 9 November 2009 at 9:30 pm #

    All shucks the fifty year mortgage deal for their customers didn’t make them enough money? I couldn’t wait for them to come out with the eighty year mortgage and a banking fee your first born. I miss picking on the DGN Bank.

  2. Jimmy Johnson #48 10 November 2009 at 9:25 am #

    Maybe they will update that building of theirs………..

  3. dgombudsman 10 November 2009 at 1:19 pm #

    Don’t hold your breath on updating the building.

  4. Craig Cook 10 November 2009 at 5:41 pm #

    Small banks – those with less than $1 billion in assets – have had a rough go in the last few decades. I’m not suprised.

  5. Greg L 10 November 2009 at 5:47 pm #

    Thestreet.com gives Diamond bank a D- rating. A would be the best and E means it is in danger of failing. DGNB already had a D rating where it had been a C a year ago. Thestreet.com doesn’t like the asset quality or the profitability of Diamond. I recommend everyone look up the rating of their bank at this site’s bank screener

  6. Meat 10 November 2009 at 5:50 pm #

    No! I love that building! If Betty Draper ever had a scene on Mad Men where she had to make a deposit, that would be the bank.

  7. Elaine Johnson 10 November 2009 at 11:31 pm #

    Perfect, Meat. I’m missing “Mad Men” already.

  8. Earl McGuire 11 November 2009 at 9:37 am #

    All jokes aside, the DGN Bank has been very good to me. I will miss it a lot. I know the staffing won’t change, but that small bank feeling will be gone. Now for a new chapter for the DGN bank. Thanks for the update; I won’t be shocked the next time I am driving through town with all the constant change that some call progress.