Wintrust Financial Corporation Acquires The Bank of Commerce (Wood Dale, IL) in FDIC-Assisted Transaction
March 25 2011 - 7:19PM
Wintrust Financial Corporation ("Wintrust") (Nasdaq:WTFC) announced
today that its wholly-owned subsidiary bank, Advantage National
Bank Group ("Advantage"), has acquired certain assets and
liabilities and the banking operations of The Bank of Commerce
("TBOC") in an FDIC-assisted transaction. TBOC operates one
location in Wood Dale, Illinois and had approximately $163 million
in total assets and $161 million in total deposits as of December
31, 2010. Advantage acquired substantially all of TBOC's assets at
a discount of approximately 14% and assumed all of the non-brokered
deposits at a premium of approximately 0.10%. In connection with
the acquisition, Advantage entered into a loss sharing agreement
with the FDIC whereby Advantage will share in losses with the FDIC
on certain loans and foreclosed real estate at TBOC.
"This FDIC-assisted transaction provides a great opportunity to
expand our presence adjacent to the existing communities served by
the community bank locations that make up Advantage National Bank
Group," said Edward J. Wehmer, President and CEO of Wintrust. "We
look forward to providing the Wood Dale community with an expanded
array of products and services while introducing our model of
community banking." Mr. Wehmer continued to note, "We expect this
transaction will be accretive to net income and earnings per
share."
TBOC's location will reopen on Saturday, March 26, 2011 and
operate as a branch of Advantage (which also operates locations in
nearby Bloomingdale, Elk Grove Village and Roselle). Depositors of
TBOC will continue to have full access to their deposits, including
ATM or debit cards, and checks. Customers should continue to bank
as usual.
Value Appreciation Instrument
In conjunction with the acquisition of TBOC, Wintrust provided
the FDIC with a Value Appreciation Instrument ("VAI") whereby
125,000 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 March 25, 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.
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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