Wintrust Financial Corporation Acquires Ravenswood Bank in FDIC-Assisted Transaction
August 06 2010 - 7:16PM
Wintrust Financial Corporation ("Wintrust") (Nasdaq:WTFC) today
announced that its wholly-owned subsidiary bank, Northbrook
Bank and Trust Company ("Northbrook"), has acquired certain
assets and liabilities and the banking operations of Ravenswood
Bank ("Ravenswood") in an FDIC-assisted transaction. Ravenswood
operates one location in Chicago, Illinois and one in Mount
Prospect, Illinois and had approximately $211 million in total
loans and $269 million in total deposits as of June 30,
2010. Northbrook acquired approximately $190 million of
assets (subject to final adjustments) at a discount of
approximately 12.6% and assumed approximately $120 million of
non-brokered deposits of Ravenswood at a premium of approximately
0.9%. In connection with the acquisition, Northbrook entered into a
loss sharing agreement with the FDIC. Under the loss-sharing
agreement, Northbrook will share in losses and the FDIC will cover
80% of the losses of certain loans and foreclosed real estate at
Ravenswood.
"This transaction further complements our strategy of expansion
into the city of Chicago and adds a suburban location in Mount
Prospect, a market in which we previously did not have a physical
presence. The Company now has five locations on the north-side
of Chicago as a result of this acquisition and the previous
FDIC-assisted acquisition of Lincoln Park Savings Bank in April of
this year," said Edward J. Wehmer, President and CEO of Wintrust.
"We look forward to serving Ravenswood Bank customers with our
model of community banking and high levels of customer service."
Mr. Wehmer continued to note, "We believe this transaction will be
accretive to Wintrust's net income and earnings per share."
Both locations of Ravenswood will reopen on Saturday, August 7,
2010 and operate as branches of Northbrook. Depositors of
Ravenswood 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 Instrument
In conjunction with the acquisition of Ravenswood, Wintrust
provided the FDIC with a Value Appreciation Instrument ("VAI")
whereby 125,000 units were awarded to the FDIC at an exercise price
of $33.00 per unit. The units are exercisable at any time from
August 6, 2010 until February 2, 2011. If the FDIC exercises
the units, Wintrust will be required to pay the FDIC an amount in
cash equal to the volume weighted average price of Wintrust common
stock over the two trading days immediately prior to the exercise
date minus the exercise price, but in no case greater than $8.00
per unit.
About Wintrust
Wintrust is a financial holding company with assets in excess of
$13 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 85 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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