Wintrust Announces Closing of Previously Disclosed Veterans First Mortgage Acquisition
January 04 2018 - 6:10PM
Wintrust Financial Corporation (“Wintrust”) (Nasdaq:WTFC) announced
that its subsidiary, Barrington Bank & Trust Company, N.A.,
through its division Wintrust Mortgage, closed on its previously
disclosed agreement, acquiring certain assets and assuming certain
liabilities of iFreedom Direct Corporation DBA Veterans First
Mortgage, a Utah Corporation (“Veterans First Mortgage”). Wintrust
Mortgage also acquired servicing rights from Veterans First
Mortgage on approximately 8,300 loans, totaling an estimated $1.4
billion in principal balance.
Veterans First Mortgage is a consumer direct lender with three
offices, operating two in Salt Lake City and one in San Diego. The
company originated in excess of $800 million in loans in 2017 and
employs approximately 400 employees. Veterans First Mortgage
specializes in VA lending, primarily for new home purchases,
which is fairly unique to the consumer direct lending business. The
acquisition brings Wintrust Mortgage a robust platform that
integrates CRM technology, customized loan origination software and
telephony systems to produce an efficient loan experience for its
customers.
TERMS OF THE TRANSACTION
The terms of this cash transaction are not being disclosed by
the parties; however, a significant portion of the purchase price
for Veterans First Mortgage assets is conditioned upon certain
future profitability measures. The transaction is
expected to be slightly accretive to Wintrust’s 2018 earnings per
share.
ABOUT WINTRUST
Wintrust is a financial holding company with assets of
approximately $27 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 150 banking locations located in the
greater Chicago and southern Wisconsin market areas.
Additionally, Wintrust operates various non-bank business
units including business units which provide commercial and life
insurance premium financing in the United States, a premium finance
company operating in 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 acquisition of Veterans First Mortgage 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 & Chief Executive Officer – Wintrust Financial Corporation
David A. Dykstra, Senior Executive Vice President & Chief Operating Officer – Wintrust Financial Corporation
(847) 939-9000
Wintrust Website address: www.wintrust.com
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