ROSEMONT, Ill., Jan. 16, 2015 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation ("Wintrust") (Nasdaq:WTFC) today announced the completion of its previously announced acquisition of Delavan Bancshares, Inc. ("Delavan"). Delavan is the parent company of Community Bank CBD ("CBD"), a Wisconsin state chartered bank, which operates four banking locations in southeastern Wisconsin. Following the transaction, CBD will be merged into Wintrust's wholly-owned Wisconsin banking subsidiary, Town Bank. CBD's banking locations will operate as branches of Town Bank.
Since its formation in 1996, CBD has a history of serving its community. CBD has approximately $210 million in assets and approximately $168 million in deposits. CBD's four banking facilities are located in Delavan, Lake Geneva, Clinton and Sharon, Wisconsin. CBD's approach to customer service is similar to that at each of our fifteen Wintrust Community Banks and their more than 135 banking locations. Like the Wintrust banks, CBD emphasizes high quality products and prides itself on superior, highly personalized customer service.
Edward J. Wehmer, President and CEO of Wintrust, said, "This transaction allows us to expand and complement our growing market presence in southeastern Wisconsin. We look forward to continuing with the community banking approach that CBD has established and to providing local communities with an expanded array of products and services."
Michael J. Murphy, President and CEO of Community Bank CBD, stated, "We are excited to begin our partnership with a successful organization that is like-minded in its philosophy of offering individually focused customer-oriented retail and commercial banking services with financial capabilities to support further expansion." Mr. Murphy emphasized that "the transaction allows us to focus on serving our customers, while at the same time providing them with access to a wider range of products and services. We are pleased to join the Wintrust family."
Terms of the Transaction
The aggregate purchase price was approximately $38 million. In the merger, outstanding shares of Delavan common stock were converted into the right to receive merger consideration paid in a combination of approximately 50% cash and approximately 50% shares of Wintrust common stock.
The transaction is not expected to have a material effect on Wintrust's 2015 earnings per share.
Robert W. Baird & Co. Incorporated acted as exclusive financial advisor to Delavan in the transaction. Boardman & Clark LLP acted as Delavan's legal advisor and Schiff Hardin LLP served as outside counsel to Wintrust.
Wintrust is a financial holding company with assets of approximately $20 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 now operates fifteen community bank subsidiaries with over 140 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.
This press release contains forward-looking statements within the meaning of the federal securities laws relating to the acquisition of Delavan Bancshares, Inc. and integration of Delavan Bancshares, Inc. 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 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/CEO Wintrust Financial Corporation (847) 939-9000 David A. Dykstra, COO Wintrust Financial Corporation (847) 939-9000 Michael J. Murphy, President/CEO Delavan Bancshares, Inc. (262) 728-2265 Wintrust Website address: www.wintrust.comSource:Wintrust Financial Corporation