Wintrust Financial Corporation Acquires Community First Bank-Chicago in FDIC-Assisted Transaction
February 04 2011 - 7:17PM
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 Community First
Bank-Chicago ("CFBC") in an FDIC-assisted transaction. CFBC
operates one location in Chicago, Illinois and had approximately
$51.1 million in total assets and $49.5 million in total deposits
as of December 31, 2010. Northbrook acquired substantially all of
CFBC's assets at a discount of approximately 8% and assumed all of
the non-brokered deposits at a premium of approximately 0.5%. In
connection with the acquisition, Northbrook entered into a loss
sharing agreement with the FDIC whereby Northbrook will share in
losses with the FDIC on certain loans and foreclosed real estate at
CFBC.
"This transaction adds another location to our growing network
on Chicago's north side. When combined with our Sauganash location
and the Lincoln Park Community Bank and Ravenswood Community Bank
transactions from last year, the Company now has six locations on
the city's north side," said Edward J. Wehmer, President and CEO of
Wintrust. "We look forward to serving Community First Bank
customers with our model of community banking and high levels of
customer service." Mr. Wehmer continued to note, "While this
transaction is relatively small it does help Wintrust in achieving
its goal of expanding further into the city of Chicago and the
transaction is not expected to have a material effect on Wintrust's
2011 earnings per share."
CFBC's location will reopen on Saturday, February 5, 2011 and
operate as a branch of Northbrook. Depositors of CFBC will continue
to have full access to their deposits, including online banking,
ATM or debit cards, and checks. Customers should continue to bank
as usual.
Value Appreciation Instrument
In conjunction with the acquisition of CFBC, Wintrust provided
the FDIC with a Value Appreciation Instrument ("VAI") whereby
62,500 units were awarded to the FDIC at an exercise price of
$34.00 per unit. The units are exercisable at any time for 180 days
after February 4, 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 of
approximately $14 billion whose common stock is traded on the
NASDAQ Global Select 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 the federal securities laws. Investors are cautioned
that such statements are predictions and that 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 in
Wintrust's subsequent Quarterly Reports on Form 10-Q.
Forward-looking statements speak only as of the date made and
Wintrust undertakes no duty to update the information.
CONTACT: Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President & Chief
Operating Officer
(847) 615-4096
Web site address: www.wintrust.com
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