Wintrust Financial Corporation Announces Plans to Acquire Select Loans from GE Capital Franchise Finance
June 27 2016 - 5:18PM
Wintrust Financial Corporation (“Wintrust”) (Nasdaq:WTFC) announced
today that the franchise finance group (“Wintrust Franchise
Finance”) of its subsidiary Lake Forest Bank and Trust Company has
signed a definitive agreement to acquire approximately $581
million in performing loans and related relationships from an
affiliate of GE Capital Franchise Finance. The loans are to
franchise operators (primarily quick service restaurant concepts)
in the Midwest and in the Western portion of the United States.
Wintrust Franchise Finance exclusively serves the needs of
franchise operators and franchisors. It has been in existence
for 15 years and currently serves more than 100 clients
nationwide.
Edward J. Wehmer, President and CEO of Wintrust said, “This
transaction represents the continued strategic expansion of our
franchise finance business. It is a business we know well and
the loans acquired are to firms that, in most cases, are well known
to our experienced staff. We look forward to continuing to
serve the franchise finance market.”
GE announced a plan in April 2015 to focus on its high-value
industrial businesses and sell most GE Capital assets not linked to
GE’s core industrial businesses. GE Capital Franchise Finance has
been a top provider of credit to franchise operators and GE will
sell its franchise finance assets to a select group of financial
services providers with experience in the area.
Closing of the transaction, which is subject to customary
closing conditions, is expected to occur in the third quarter of
2016. The dollar amount of loans acquired may increase or
decrease based on activity between the announcement and the
closing. The transaction is expected to be slightly accretive
to Wintrust’s 2016 earnings per share and accretive in 2017.
About Wintrust
Wintrust is a financial holding company with assets of
approximately $23 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 with over 150 banking locations located in the greater
Chicago and southern Wisconsin market areas. Additionally, the
Company operates various non-bank business units 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, a business unit 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 proposed
acquisition and its integration 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 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 any
subsequent Quarterly Report on Form 10-Q. Forward-looking
statements speak only as of the date made and Wintrust undertakes
no duty to update the information.
FOR MORE INFORMATION CONTACT:
Edward J. Wehmer, President/CEO – Wintrust Financial Corporation, (847) 939-9000
David A. Dykstra, COO – Wintrust Financial Corporation, (847) 939-9000
Wintrust Website address: www.wintrust.com
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