Wintrust Financial Corporation Acquires First United Bank in FDIC-Assisted Transaction
September 28 2012 - 7:11PM
Wintrust Financial Corporation ("Wintrust") (Nasdaq:WTFC) announced
today that its wholly-owned subsidiary bank, Old Plank Trail
Community Bank, National Association ("Old Plank Trail Bank"), has
acquired certain assets and liabilities and the banking operations
of First United Bank of Crete, Illinois ("First United Bank") in an
FDIC-assisted transaction. First United Bank currently operates
four locations in Illinois; one in Crete, two in Frankfort and one
in Steger, as well as one location in St. John, Indiana. As of June
30, 2012, FDIC data reflects First United Bank had approximately
$328 million in total assets and $316 million in total deposits.
Old Plank Trail Bank acquired substantially all of First United
Bank's assets at a discount of approximately 9.3% and assumed all
of the non-brokered deposits at a premium of 0.60%. In connection
with the acquisition, Old Plank Trail Bank entered into a loss
sharing agreement with the FDIC whereby Old Plank Trail Bank will
share in losses with the FDIC on certain loans and foreclosed real
estate at First United Bank.
"This FDIC-assisted transaction provides a great opportunity to
expand our presence in the southern suburbs of Chicago, where we
currently operate Old Plank Trail Community Bank, said Edward J.
Wehmer, President and CEO of Wintrust. Mr. Wehmer continued to
note, "This transaction is another step for Wintrust as we continue
to increase our role as Chicago's Bank."
First United Bank locations will reopen on Saturday, September
29, 2012 and operate as a branch of Old Plank Trail
Bank. Depositors of First United Bank will continue to have
full access to their deposits, including ATM or debit cards, and
checks. Customers should continue to bank as usual.
Valuation Appreciation Instrument
In conjunction with the acquisition of First United Bank,
Wintrust provided the FDIC with a Value Appreciation Instrument
("VAI") whereby 187,500 units were awarded to the FDIC at an
exercise price of $39.00 per unit. The units are exercisable at any
time for 90 days after September 28, 2012. 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 $17 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 over 100 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 and Canada, a company providing short-term
accounts receivable financing and value-added out-sourced
administrative services to the temporary staffing services
industry, companies engaging in the origination of residential
mortgages for sale into the secondary market throughout the United
States, and companies providing wealth management services.
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: FOR MORE 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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