Customers of Elgin State Bank will soon see changes to their bank due to an agreement signed by Wintrust Financial Corporation yesterday morning. The agreement allows Wintrust to acquire the bank for $13.75M.
Wintrust Financial Corporation is based in Lake Forest, Illinois and carries assets totaling over $14 billion. Before its latest acquisition Wintrust wholly-owned 15 banking subsidiaries including nine Illinois-chartered banks, one Wisconsin-chartered bank and five nationally-chartered banks.
The Bank Presidents Speak Out
Elgin State Bank values itself as having, “Small-Town Values and Real Customer Service,” traits that fit in well with Winstrust’s objective of community-oriented banking services. According to Wintrust President and CEO, Edward J. Wehmer, “This transaction is a great opportunity for both organizations. It enhances our ability to serve the sizable and growing Elgin/Fox Valley market,” he stated in a press release, “The Elgin community is complementary to markets we currently serve. We look forward to continuing with the community banking approach that Elgin State Bank has established and providing the greater Elgin community with an expanded array of products and services.
Elgin customer’s should be reassured that this move is to increase impact and provide a greater reach to customers. Elgin State Bank CEO, Mark R. Abate, explains, “the transaction allows us to continue focusing on serving our customers as we have for the past 40 years, while at the same time providing our customers with access to a wider range of products and services. We clearly see benefits for our customers, shareholders and employees and we look forward to joining the Wintrust family.”
Not Yet Official
The transaction is still subject to possible adjustments based off of Elgin State Bank’s equity at closing, but the current price is approximated at $13.75 million. The two institutions have also agreed on converting Elgin State Bank’s common stock as payment totaling 25% in cash and 75% of shares will be converted into Wintrust Common Stock.
The transaction has not yet closed as it is awaiting regulatory approval, which is predicted to be deemed in the fourth quarter.