Expansion moves continue at Wintrust Financial Corporation WTFC. Strengthening its footprint in Chicago, the Illinois-based bank announced the completion of the acquisition of North Bank on Jul 1. The total purchase price was around $17 million.
Shares of Wintrust Financial dipped 1.6%, which perhaps has been translated from the overall negative market sentiment on Jul 2.
The latest acquisition provides Wintrust with North Bank’s two banking locations in downtown Chicago, besides adding $106 million in assets, $96 million in deposits and $55 million in loans (as of Mar 31, 2015).
President and CEO Edward J. Wehmer stated, “This transaction allows us to expand and complement our growing market presence in downtown Chicago. We look forward to continuing with the community banking approach that North Bank has established and to providing its customer base with an expanded array of products and services.”
Reportedly, the acquisition which was announced on Mar 30, is not likely to materially impact earnings of Wintrust in 2015.
With $20 billion assets, Wintrust runs fifteen community bank subsidiaries with more than 145 banking locations spread in the greater Chicago and southern Wisconsin market areas. The company is on a spree of acquisitions as it continues to pursue growth opportunities through inorganic routes.
Notably since the beginning of the year, Wintrust announced three acquisition deals including North Bank. In March, the company also announced plans to acquire Community Financial Shares, Inc. – the parent company of Wheaton and Glen Ellyn, Illinois-based Community Bank. Further in April, the company revealed that it has entered into a definitive agreement to acquire Suburban Illinois Bancorp, Inc.
Wintrust seems to capitalize on the current opportunities as several small banks in the Chicago area look to exit.
Wintrust currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the mid-west banks space include Commerce Bancshares, Inc. CBSH, German American Bancorp Inc. GABC and Huntington Bancshares Incorporated HBAN. All three carry a Zacks Rank #2 (Buy).
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