Wintrust Financial Corporation Announces Plans to Acquire Elgin State Bancorp for $13.75M

Wintrust Financial Corporation WTFC today announced the signing of a definitive agreement to acquire Elgin State Bancorp, Inc. ("ESBI"). ESBI is the parent company of Elgin State Bank, an Illinois state bank, which operates three banking locations in Elgin, Illinois. Elgin State Bank has an established history of serving the Elgin/Fox Valley banking community dating back to its formation in 1964. As of March 31, 2011 it had approximately $288 million in assets and approximately $259 million in deposits. Elgin State Bank's three banking facilities are located at 1001 South Randall Road, 445 Summit Street and 590 North McLean Boulevard in Elgin. Founded on "Small Town Values and Real Customer Service", its approach to customers is similar to that at each of the fifteen Wintrust Community Banks and its 95 banking locations. From services, products, and staff, a high level of involvement between bank employees and customers has always been a top priority from top management down. Edward J. Wehmer, President and CEO of Wintrust, said, "This transaction is a great opportunity for both organizations. It enhances our ability to serve the sizable and growing Elgin/Fox Valley market." Wehmer continued, "The Elgin community is complementary to markets we currently serve. We look forward to continuing with the community banking approach that Elgin State Bank has established and providing the greater Elgin community with an expanded array of products and services." Terms of the Transaction Subject to possible adjustment depending on ESBI's equity at closing, the aggregate purchase price will approximate $13.75 million. In the merger, shares of ESBI common stock outstanding will be converted into the right to receive merger consideration paid in a combination of 25% cash and 75% shares of Wintrust common stock. ESBI shareholders could also receive up to approximately $1.5 million of additional cash consideration based upon the performance of certain designated loans within Elgin State Bank's portfolio over the three years subsequent to the closing date. The transaction is subject to approval by banking regulators and certain closing conditions. The transaction is expected to close early in the fourth quarter of 2011 and is not expected to have a material effect on Wintrust's 2011 earnings per share.