The Chicago Tribune is reporting the sale of privately held Downers Grove National Bank to Chicago-based Diamond Bank. Diamond Bank, also privately held, has branches in Chicago, Elmhurst and Schaumburg, and is opening a branch in Skokie. The purchase of Downers Grove National Bank “gives us access to the south DuPage market,” said Matt Gambs, chief executive for Diamond. The purchase price was not disclosed.
According to numbers reported by the Tribune, Downers Grove National lost $349,000 in the first half of 2009. Comparatively, DGNB had a profit of $900,000 in the first half of 2008. The bank had quietly been shopping for a buyer as a way to raise capital, facing an increase in the percentage of bad loans and rising FDIC insurance costs.
James Russ, Sr., chairman and CEO of Downers Grove National, is a well-known figure in Downers Grove. The Russ family has long been involved in local affairs; James Russ, Jr. is a prominent local attorney. Downers Grove National Bank is a frequent benefactor to many community events, and the Chronicle hopes that their commitment to local philanthropy will continue after the sale.