In what would be its first open-bank acquisition in five years, Wintrust Financial Corp. in Lake Forest, Ill., announced Tuesday that it is acquiring Elgin State Bancorp Inc. in Elgin, Ill., for $13.8 million in cash and stock.
Wintrust, a multi-bank holding company with $15 billion of assets, had been an active acquirer last decade, but it took a break from doing deals in 2006 because its management believed that asking prices were getting too high. Lately it has focused on buying failed banks, acquiring three this year, including the $1 billion-asset First Chicago Bank and Trust.
Elgin has $288 million of assets and three branches, all in Elgin. In a news release, Wintrust Chief Executive Officer Edward J. Wehmer said that the Elgin market is "complementary" to markets Wintrust already serves through its 15 subsidiary banks.
Wintrust said that Elgin State Bank shareholders could receive an additional $1.5 million in cash if certain Elgin loans meet Wintrust's performance standards in the three years after the deal closes.
The sale is expected to be completed early in the fourth quarter.
