Roberto R. Herencia has left Midwest Banc Holdings Inc., whose Midwest Bank unit failed last month, but has signed a consulting agreement that could pay him $25,000 a month.

In May, Midwest Bank, a $3.17 billion-asset lender that was among the first community banks to get federal bailout funds, was seized by regulators  after failing to raise capital it needed to stay independent.
Its assets, deposits and branches were taken over by Akron, Ohio-based FirstMerit. Midwest Bank was part of publicly traded Midwest Banc Holdings of Melrose Park.

Local bank industry observers had said Herencia, who was recruited for the Midwest CEO job a year ago, had made the bank more attractive to potential buyers through cost cutting and other initiatives.

The agreement reached June 22 between Herencia and Midwest Banc effectively terminates Herencia’s employment agreement with the company, according to a Securities and Exchange Commission filing.

“Under the agreement, Mr. Herencia will perform those duties as assigned to him from time to time by the board of directors as they relate to the winding-up of the business and affairs of the company,” Midwest Banc said in a Securities and Exchange Commission filing. “Mr. Herencia will be paid $25,000 per month while performing services under the agreement.”

Herencia is no longer at Midwest Bank either.

“We appreciate his leadership at Midwest Bank & Trust Co.,” a FirstMerit spokesman said this month, noting that Herencia is pursuing new opportunities. “We wish him the best in his new endeavors.”

Read the SEC filing.