ILLINOIS REGIONAL <ILLR> MULLS AFFILIATION Illinois Regional Bancorp said it is evaluating whether to affiliate with a larger bank holding company or continue to remain independent. The 500 mln dlr-asset bank holding company said that in view of recent investor interest in suburban Chicago banks, it retained Merrill Lynch Capital markets to advise it on its alternatives. Last year, Illinois Regional had discussions with Milwaukee-based Marine Corp <MCRP> but no agreement was reached, a company spokesman said.