Wintrust Financial Corporation (Nasdaq:WTFC) announced last week that it will pay $30.3 million to acquire First Community Financial Corporation, the parent company of First Community Bank, which operates two banking locations in Elgin.
As of March 31, 2016, First Community Bank had about $178 million in assets, $79 million in loans and $155 million in deposits, according to a Nasdaq news release.
Thomas M. Johannesen, CEO of First Community Bank, said the Wintrust acquisition is good news for local bank customers, who will have access to a wider range of products and services.
“We are excited about the opportunity to combine resources with Wintrust,” he said. “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.”
Edward J. Wehmer, president and CEO of Wintrust, said the hometown feel of the two Elgin banks and emphasis on personal service will continue. “We look forward to continuing with the community banking approach that First Community Bank has established and to providing its customer base with an expanded array of products and services,” he said.
Terms of the Transaction
Subject to possible adjustment, the aggregate purchase price will be $30.3 million. Shares of FCFC common stock outstanding at the time of the merger will be converted into the right to receive merger consideration paid in cash.
The transaction is subject to approval by banking regulators and FCFC’s shareholders and certain closing conditions. The transaction is expected to close late in the third quarter or early in the fourth quarter of 2016 and is not expected to have a material effect on Wintrust’s 2016 earnings per share.
Wintrust is a financial holding company with assets of approximately $24 billion whose common stock is traded on the NASDAQ Global Select Market. It operates 15 community bank subsidiaries with more than 150 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.
SOURCE: Nasdaq.com news release