By Becky Yerak | Jay Fritz, a former high-level executive at failed Midwest Bank, has joined Cornerstone National Bank & Trust Co. of Palatine along with four other Midwest managers.

Cornerstone, which has assets of $399 million and has been profitable, was founded in 2000. It has branches in Palatine, Crystal Lake and Lake Zurich.

Fritz will be a managing director, which is akin to a vice chairman
role.

Fritz had resigned as a Midwest director in 2009 but was still at the
bank, owned by publicly traded Midwest Banc Holdings of Melrose Park,
when it was closed in May by regulators. It was hurt largely by its
investments in government-sponsored entities such as Fannie Mae.

He was one of Midwest’s most highly compensated officers in 2009.  As
senior executive vice president, he had total compensation of $438,000
in 2009, including salary of $322,000.

After former Chief Executive James Giancola left the $3 billion-asset
bank in March 2009, Fritz was his interim replacement until the May 2009
hiring of Roberto R. Herencia as the new CEO. Fritz was 61 as of
Midwest’s April proxy.

Fritz joined Midwest in 2006 when it acquired Royal American Bank of
Inverness.

Also joining Fritz at Cornerstone are: Brian Goebbert, senior vice
president of commercial lending; Andrew Schaefer, also a senior vice
president in commercial lending; and John Lambert and John Budziak, in
the trust and investment services department.

“This is the opportunity of a lifetime,” Cornerstone Chairman and Chief
Executive Tom MacCarthy said. “It’s not often you get an opportunity to
get this quality of individual. Jay and his team were formidable
competitors for many years, having organized Royal American Bank.”

Cornerstone caters to small- and midsized businesses and also is
involved in wealth management, he said.