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Ghanaian-American family business group acquires small Chicago bank

GroupeNduom, a family business group of Ghanaian and American origin, has acquiredChicago-based Illinois-ServiceFederal Savings and Loan Association ($101.0 million), according toan April 29 press release posted on the website of Accra, Ghana-based GN Bank,an affiliate of theinvestor group.

Theterms of the dealwere not disclosed in the release.Illinois-Service FS&LA and the OCC were not immediately available tocomment on the morning of May 2.

SNL valuations for bank and thrift targets in the Midwestregion between April 29, 2015, and April 29, 2016, averaged 125.43% of book,129.70% of tangible book and had a median of 19.14x last-12-months earnings, onan aggregate basis.

Therelease says completion of the transaction follows approval from the OCC. In2015, the bank's board approved the adoption of a plan of voluntary supervisoryconversion and stock purchase agreement with Papa Kwesi Nduom and Nduom familymembers, whereby Illinois-Service FS&LA converted from the mutual form ofownership to the stock form of ownership and issued newly authorized common sharesto the investors in a recapitalization transaction.

Accordingto the release, the bank experienced difficulties during the financial crisis,and the conversion and recapitalization was a crucial step in its turnaround.

Thebank began in 1934 when community leaders came together to establish a savingsand loan association to serve African-American residents of Chicago.

In April2015, Illinois-Service FS&LA received a cease and desist orderfrom the OCC, as its earlier formal agreement was terminated at the same time.Papa Kwesi Nduom and Yvonne Nduom are private investors who launched theircareers in the Midwest.

Papa Kwesi Nduom was a Deloitte & Touche partner inMilwaukee and Yvonne Nduom worked with Allstate Insurance and Blue Cross, BlueShield in Wisconsin. Their management services company is Washington,D.C.-based International Business Solutions LLC, through which they offermanagerial, technical and financial services.

Vedder Price PC's Daniel McKay II, James Morrissey and MarkSvalina were legal advisers to Illinois-Service FS&LA in connection withthe recapitalization