Wintrust Financial Corporation Announces Plan to Sell the Deposits and Current Banking Operations of Second Federal Savings and
November 28 2012 - 6:22PM
Wintrust Financial Corporation ("Wintrust") (Nasdaq:WTFC) announced
today that its wholly-owned subsidiary bank, Hinsdale Bank &
Trust Company ("Hinsdale Bank"), has entered into a definitive
agreement to sell the deposits and the current banking operations
of Second Federal Savings and Loan, a branch of Hinsdale Bank
("Second Federal") to Self-Help Federal Credit Union, partnering
with The Resurrection Project.
Hinsdale Bank currently operates three Second Federal locations;
two branches in Chicago (Brighton Park and Little Village
neighborhoods) and one in neighboring Cicero, Illinois. As of
September 30, 2012, Second Federal had approximately $161 million
in deposits. Hinsdale Bank purchased the deposits of Second Federal
from the Federal Deposit Insurance Corporation (FDIC) when it
failed and was placed in receivership with the FDIC on July 20,
2012.
"At our core, we are community bankers first. One of the main
goals of community banks is to provide access. Sometimes that takes
different forms. In this case, it's about helping a vibrant
community choose its own financial destiny," said Edward J. Wehmer,
President and CEO of Wintrust. Mr. Wehmer continued to note, "We
came into Second Federal's neighborhoods with the intention of
serving all the financial needs of the community. After working
with a number of community leaders, we came to the conclusion that,
for now, those needs are best served by the venture that The
Resurrection Project has developed. We are honored to have been the
bridge to allow this community the time to build the coalition
necessary to take responsibility for Second Federal."
"We are pleased to continue the legacy of Second Federal in
Brighton Park, Little Village and Cicero communities. Wintrust and
Hinsdale Bank served a critical and responsible role in allowing
time for The Resurrection Project and our partner, Self-Help
Federal Credit Union, to complete the purchase of the Second
Federal loan portfolio from the FDIC. The Resurrection Project and
Self-Help Federal Credit Union are proud to lead Second Federal
into its next chapter as it continues to be a pillar of these
important communities," stated Raul Raymundo, The Resurrection
Project's CEO. Mr. Raymundo continued, "I want to personally thank
Ed Wehmer and the Wintrust team for their continued support of our
neighborhoods and the Latino community as a whole. We look forward
in working with Wintrust as their presence grows in the Chicago
area."
"Self-Help's involvement in Chicago – and expanding beyond our
current operations in California and North Carolina – would not be
possible without The Resurrection Project's strong community
leadership," said Martin Eakes, CEO and Co-founder of Center for
Community Self-Help and Self-Help Federal Credit Union. Mr. Eakes
further noted that, "We are delighted by all the support that
Wintrust and its network of community banks are providing. Going
forward, we are excited that they have agreed to work with us to
provide financial services to small businesses and middle market
companies in the Brighton Park, Cicero, and Little Village
neighborhoods, as well as surrounding areas."
Terms of the transaction are not being disclosed at this
time. The transaction is subject to approval by banking
regulators and certain closing conditions. The transaction is
expected to close in the first quarter of 2013 and is not expected
to have a material effect on Wintrust's earnings per share.
About Wintrust
Wintrust is a financial holding company with assets of more than
$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, 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.
About The Resurrection Project
The Resurrection Project is one of Chicagoland's most successful
community development organizations. Since 1990, The Resurrection
Project has revitalized predominantly low-income Latino communities
on Chicago's Southwest side through a variety of community
development strategies. The Resurrection Project serves
families—especially Latinos—from all over the metropolitan Chicago
region with a particular focus on the communities of Pilsen, Little
Village, Back of the Yards, and Melrose Park.
About Self-Help
The nonprofit Center for Community Self-Help (or Self-Help)
combines several organizations that together provide financing,
technical support, consumer financial services and advocacy for
those left out of the economic mainstream. These entities include:
Self-Help Credit Union, Self-Help Federal Credit Union, Self-Help
Ventures Fund and the Center for Responsible Lending. Since
Self-Help's founding in 1980, the organization has reached out
particularly to female, low-income, low-wealth, rural and minority
households and communities across North Carolina, Washington D.C.,
California and many other states.
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) 939-9000
Web site address: www.wintrust.com
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