ROSEMONT, Ill., Sept. 28, 2012 (GLOBE NEWSWIRE) -- 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.