ROSEMONT, Ill., Dec. 12, 2012 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation ("Wintrust") (Nasdaq:WTFC) today announced the completion of its previously announced acquisition of 100% of HPK Financial Corporation ("HPK"). HPK is the parent company of Hyde Park Bank and Trust Company, an Illinois state bank ("Hyde Park Bank"), which operates two banking locations in the Hyde Park neighborhood of Chicago, Illinois. As part of the transaction, Hyde Park Bank will be merged into Wintrust's wholly-owned subsidiary, Beverly Bank & Trust Company, N.A. Hyde Park Bank's two banking locations will operate as branches of Beverly Bank & Trust Company, N.A. under the name Hyde Park Bank.
Hyde Park Bank has an established history of serving its community dating back to its formation in 1928. As of September 30, 2012 it had approximately $131 million in loans and approximately $244 million in deposits. Hyde Park Bank's two banking facilities are located at 1525 East 53rd Street and 1311 East 57th Street in Chicago. Its flagship building, a Chicago landmark located at the corner of 53rd Street and Lake Park Avenue in Hyde Park, has served as a community anchor and retail gateway for more than three generations. Hyde Park Bank's approach to customer service is similar to that of other Wintrust community banks, with a high level of involvement between bank employees and customers as a top priority.
Edward J. Wehmer, President and CEO of Wintrust, said, "This transaction provides a wonderful opportunity to expand our presence to the vibrant Hyde Park neighborhood of Chicago and helps us continue on our path to become Chicago's Bank. We look forward to continuing Hyde Park Bank's community banking approach and providing the local community with an expanded array of products and services."
Timothy G. Goodsell, CEO of Hyde Park Bank, stated, "We are excited about the opportunity to combine resources with Wintrust. This is a great opportunity to partner with a successful organization that is like-minded in its philosophy of offering highly personalized customer-oriented retail and commercial banking services with financial capabilities to support further expansion." Mr. Goodsell emphasized that by joining forces with Wintrust, "the transaction allows Hyde Park Bank to continue focusing on serving its customers as it has for the past 84 years, while at the same time providing its customers with access to a wider range of products and services. We clearly see benefits for our customers and we are pleased to join the Wintrust family."
Terms of the Transaction
The aggregate purchase price was approximately $27.5 million. In the merger, shares of HPK common stock outstanding were converted into the right to receive merger consideration paid in a combination of cash and shares of Wintrust common stock. In the aggregate, the merger consideration was paid in approximately equal amounts of cash and shares of Wintrust common stock.
The transaction is not expected to have a material effect on Wintrust's 2012 earnings per share.
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 the 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 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 HPK Financial Corporation and integration of HPK Financial Corporation 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 Report on Form 10-Q. Forward-looking statements speak only as of the date made and Wintrust undertakes no duty to update the information.
CONTACT: FOR MORE INFORMATION CONTACT: Edward J. Wehmer, President/CEO - Wintrust Financial Corporation, (847) 939-9000 David A. Dykstra, Senior EVP/COO - Wintrust Financial Corporation, (847) 939-9000 Timothy G. Goodsell, President/CEO - HPK Financial Corporation (773) 752-4600 Wintrust Website address: www.wintrust.comSource:Wintrust Financial Corporation