Wintrust Financial Corporation Announces the Closing of the Acquisition of Elgin State Bancorp, Inc.
September 30 2011 - 4:01PM
Wintrust Financial Corporation ("Wintrust") (Nasdaq:WTFC) today
announced the completion of its previously announced acquisition of
100% of the ownership interests of Elgin State Bancorp, Inc.
("ESBI"). ESBI is the parent company of Elgin State Bank, an
Illinois state chartered bank. As part of the transaction, Elgin
State Bank merged into Wintrust's wholly-owned subsidiary, St.
Charles Bank & Trust Company. Elgin State Bank's three
banking locations will operate as branches of St. Charles Bank
& Trust Company under the brand of Elgin State Bank.
Elgin State Bank established a history of serving the Elgin/Fox
Valley banking community dating back to its formation in
1964. As of June 30, 2011 it had approximately $277 million in
assets and approximately $249 million in deposits. Elgin State
Bank's three banking facilities are located at 1001 South Randall
Road, 445 Summit Street and 590 North McLean Boulevard in
Elgin. Founded on "Small Town Values and Real Customer
Service," its approach to customers has been similar to that at
each of the fifteen Wintrust Community Banks and their nearly 100
banking locations. From services, products and staff, a high
level of involvement between Elgin State Bank employees and
customers has always been a top priority from top management
down.
Edward J. Wehmer, President and CEO of Wintrust, said, "This
transaction is a great opportunity for both organizations. It
enhances our ability to serve the sizable and growing Elgin/Fox
Valley market." Wehmer continued, "The Elgin community is
complementary to markets we currently serve. We look forward
to continuing with the community banking approach that Elgin State
Bank established and providing the greater Elgin community with an
expanded array of products and services."
Mark R. Abate, CEO of Elgin State Bank, stated, "We are excited
about combining resources with Wintrust. This is a great
partnership with a successful organization that is like-minded in
its philosophy of offering highly personalized customer-oriented
retail and commercial banking services with financial capabilities
to support further expansion." Mr. Abate emphasized that joining
forces with Wintrust "allows us to continue focusing on serving our
customers as we have for the past 40 years, while at the same time
providing our customers with access to a wider range of products
and services. We clearly see benefits for our customers and we
are pleased to join the Wintrust family."
Terms of the Transaction
Under the terms of the merger agreement, shareholders of ESBI
will receive, in exchange for their shares of ESBI common stock,
merger consideration in the form of shares of Wintrust common stock
and cash. At the closing, in the aggregate, the outstanding
common stock held by shareholders of ESBI will be converted into
the right to receive approximately 353,650 shares of Wintrust
common stock and cash in the amount of approximately $3.4
million.
ESBI shareholders could also receive in the aggregate up to
approximately $1.5 million of additional cash consideration based
upon the performance of certain designated loans within Elgin State
Bank's portfolio over the three years subsequent to the closing
date of the merger.
The transaction is not expected to have a material effect on
Wintrust's 2011 earnings per share.
Financial Advisor
ParaCap Group, LLC acted as financial advisor to ESBI in
conjunction with this transaction.
About Wintrust
Wintrust is a financial holding company with assets of
approximately $15 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 99 banking locations 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.
Forward-Looking Information
This press release contains forward-looking statements within
the meaning of the federal securities laws relating to the
acquisition of Elgin State Bancorp, Inc. and integration of Elgin
State Bancorp, Inc. 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 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/CEO
Wintrust Financial Corporation
(847) 615-4096
David A. Dykstra, COO
Wintrust Financial Corporation
(847) 615-4096
Mark R. Abate, CEO
Elgin State Bancorp, Inc
(847) 888-7950
Wintrust Website address: www.wintrust.com
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