Wintrust Announces Veterans First Mortgage Acquisition Agreement
December 11 2017 - 10:32PM
Wintrust Financial Corporation (“Wintrust”) (Nasdaq:WTFC) announced
that its subsidiary, Barrington Bank & Trust Company, N.A.,
through its division Wintrust Mortgage, has negotiated the terms of
an agreement to purchase certain assets and assume certain
liabilities of iFreedom Direct Corporation DBA Veterans First
Mortgage, a Utah Corporation (Veterans First Mortgage) subject to
conditions including final due diligence, execution of a definitive
agreement and approval from mortgage regulators. The agreement is
also expected to include servicing rights from Veterans First
Mortgage on approximately 9,000 loans, totaling an estimated $1.4
billion in principal balance.
Veterans First Mortgage is a consumer direct lender with three
offices, operating two in Salt Lake City and one in San Diego. The
company is projected to originate in excess of $800 million in
loans in 2017 and employ approximately 400 employees. Veterans
First Mortgage specializes in VA lending, primarily for new home
purchases, which is fairly unique to the consumer direct lending
business. The acquisition is expected to bring to Wintrust Mortgage
a robust platform that integrates CRM technology, customized loan
origination software and telephony systems to produce an efficient
loan experience for its customers.
“This acquisition will allow Wintrust Mortgage to expand both in
size and structure,” said Wintrust Mortgage President and CEO David
Hrobon. “Veterans First Mortgage has built a terrific consumer
direct lending business with some of the industry’s brightest
leadership and employees. We look forward to the synergistic
opportunities that will arise from this merger of talent.”
Veterans First Mortgage President and CEO Kevin Gates added,
“Veterans First Mortgage has built a reputation on quality loans,
expertise and customer-first service and we know this is also true
of Wintrust Mortgage. We share a common culture and have common
leadership styles, so this acquisition could not be a better
fit.”
TERMS OF THE ANTICIPATED TRANSACTION
The terms of this cash transaction are not being disclosed by
the parties; however, a significant portion of the purchase price
for Veterans First Mortgage assets will be conditioned upon certain
future profitability measures. The transaction is expected to be
slightly accretive to Wintrust’s 2018 earnings per share.
ABOUT WINTRUST
Wintrust is a financial holding company with assets of
approximately $27 billion whose common stock is traded on the
NASDAQ Global Select Market. Built on the “HAVE IT ALL” model,
Wintrust offers sophisticated technology and resources of a large
bank while focusing on providing service-based community banking to
each and every customer. Wintrust operates fifteen community bank
subsidiaries, now with over 150 banking locations located in the
greater Chicago and southern Wisconsin market areas.
Additionally, Wintrust operates various non-bank business
units including one of the largest commercial insurance premium
finance companies operating in the United States and Canada, a
company providing short-term accounts receivable financing and
value-added out-sourced administrative services to the temporary
staffing services industry, a business unit engaging primarily in
the origination and purchase of residential mortgages for sale into
the secondary market throughout the United States, and companies
providing wealth management services.
Forward-Looking Information
This press release contains forward-looking
statements within the meaning of the federal securities laws
relating to the potential acquisition of Veterans First Mortgage
and its integration with Wintrust, the combination of their
businesses and projected revenue, as well as profitability and
earnings outlook. Investors are cautioned that such statements are
predictions and actual events or results may differ materially.
Wintrust's expected financial results or other plans are subject to
a number of risks and uncertainties. For a discussion of such risks
and uncertainties, which could cause actual results to differ from
those contained in the forward-looking statements, see "Risk
Factors" and the forward-looking statement disclosure contained in
Wintrust's Annual Report on Form 10-K for the most recently ended
fiscal year and any subsequent Quarterly Report on Form 10-Q.
Forward-looking statements speak only as of the date made and
Wintrust undertakes no duty to update the information.
FOR MORE INFORMATION
CONTACT:Edward J. Wehmer, President & Chief Executive
Officer – Wintrust Financial Corporation,David A. Dykstra, Senior
Executive Vice President & Chief Operating Officer – Wintrust
Financial Corporation(847) 939-9000Wintrust Website address:
www.wintrust.com
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