Wintrust Financial Corporation Acquires Lincoln Park Savings Bank and Wheatland Bank in FDIC-Assisted Transactions
April 23 2010 - 8:23PM
Wintrust Financial Corporation ("Wintrust") (Nasdaq:WTFC) today
announced that two of its wholly-owned subsidiary banks, Northbrook
Bank & Trust Company ("Northbrook") and Wheaton Bank &
Trust Company ("Wheaton"), in two FDIC-assisted transactions, have
respectively acquired certain assets and liabilities and the
banking operations of Lincoln Park Savings Bank and Wheatland Bank.
Lincoln Park Savings Bank operates four locations in Chicago,
Illinois and had approximately $205 million in total assets and
$171 million in total deposits as of December 31,
2009. Wheatland Bank has one location in Naperville, Illinois,
and had approximately $435 million in total assets and $438 million
in total deposits as of December 31, 2009. In connection with
the acquisitions, Northbrook and Wheaton entered into loss sharing
agreements with the FDIC, which cover substantially all of the
acquired loans and foreclosed real estate. All locations at
both newly acquired banks will be open for business Saturday
morning, April 24, 2010.
"These two transactions represent a great opportunity for us to
expand our presence while maintaining our focus on community
banking," said Edward J. Wehmer, President and CEO of
Wintrust. "We look forward to serving our new customers with
our commitment to personalized service." Mr. Wehmer continued
to note "we expect these transactions to benefit Wintrust on a
Company-wide level as we believe they will be accretive to net
income and earnings per share."
Lincoln Park Savings Bank
Transaction
Northbrook Bank & Trust Company assumed the outstanding
deposits of Lincoln Park Savings Bank for a premium of
approximately 0.4% and acquired approximately $190 million of
assets (subject to final adjustments) at a discount of
approximately 10.7%. The acquired assets are subject to
loss-sharing agreements with the FDIC, whereby Northbrook Bank
& Trust Company will share in losses and the FDIC will cover
80% of the losses of certain loans and foreclosed real estate at
Lincoln Park Savings Bank.
Locations of Lincoln Park Savings Bank will reopen on Saturday,
April 24, 2010 and operate as branches of Northbrook Bank &
Trust Company. Depositors of Lincoln Park Savings Bank will
continue to have full access to their deposits, including through
online banking, ATM or debit cards, and checks. Customers
should continue to bank as usual.
Wheatland Bank Transaction
Wheaton Bank & Trust Company assumed the majority of the
outstanding deposits of Wheatland Bank for a premium of
approximately 0.4% and acquired approximately $380 million of
assets (subject to final adjustments) at a discount of
approximately 16.0%. The acquired assets are subject to
loss-sharing agreements with the FDIC, whereby Wheaton Bank &
Trust Company will share in losses and the FDIC will cover 80% of
the losses of certain loans and foreclosed real estate at Wheatland
Bank.
Wheatland Bank's single location will reopen on Saturday, April
24, 2010 and operate as a branch of Wheaton Bank & Trust
Company. Depositors of Wheatland Bank will continue to have
full access to their deposits, including through online banking,
ATM or debit cards, and checks. Customers should continue to
bank as usual.
Value Appreciation Instruments
In conjunction with the acquisitions of Lincoln Park Savings
Bank and Wheatland Bank, Wintrust provided the FDIC with a Value
Appreciation Instrument ("VAI") to be settled in cash for each of
the transactions whereby 125,000 units were awarded to the FDIC for
each of the transactions at a exercise price of $38.75 per share
and are exercisable at any time from April 26, 2010 and up to 180
days after April 26, 2010. The cash amount per unit paid to
the FDIC upon exercise of the VAI shall equal the average volume
weighted price over the two trading days immediately prior to the
exercise date minus the exercise price, but in no case greater than
$8 per unit.
Conference Call, Web Cast and Replay
The Company will hold a conference call at 1:00 p.m. (CT)
Wednesday, April 28, 2010 regarding first quarter 2010 results and
will discuss these transactions at that time. Individuals
interested in listening should call (877) 363-1279 and enter
Conference ID #69475431. A simultaneous audio-only web cast
and replay of the conference call may be accessed via the Company's
web site at (http://www.wintrust.com), Investor News and Events,
Presentations & Conference Calls.
About Wintrust
Wintrust is a financial holding company with assets in excess of
$12 billion whose common stock is traded on the Nasdaq Stock Market
(Nasdaq:WTFC). Wintrust operates fifteen community bank
subsidiaries that are located in the greater Chicago and Milwaukee
market areas. Additionally, the Company operates various non-bank
subsidiaries including one of the largest commercial insurance
premium finance companies operating in the United States, a company
providing short-term accounts receivable financing and value-added
out-sourced administrative services to the temporary staffing
services industry, companies 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 including broker-dealer, money management
services, advisory services, and trust and estate services.
Currently, Wintrust operates more than 75 banking offices.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of federal securities laws. Forward-looking information
can be identified through the use of words such as "intend,"
"plan," "project," "expect," "anticipate," "believe," "estimate,"
"contemplate," "possible," "point," "will," "may," "should,"
"would" and "could." Forward-looking statements and information are
not historical facts, are premised on many factors and assumptions,
and represent only management's expectations, estimates and
projections regarding future events. Similarly, these statements
are not guarantees of future performance and involve certain risks
and uncertainties that are difficult to predict, which may include,
but are not limited to, those discussed under Item 1A of the
Company's Annual Report on Form 10-K for the year ended December
31, 2009 and in any of the Company's subsequent SEC filings.
Forward-looking statements speak only as of the date made and
Wintrust undertakes no duty to update the information.
CONTACT: Wintrust Financial Corporation
Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President
& Chief Operating Officer
(847) 615-4096
www.wintrust.com
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