Greenwoods Completes Acquisition of Three Town Bank Branch Locations

Rhea-AI Summary

Wintrust Financial Corporation (Nasdaq: WTFC) has completed a branch purchase and assumption transaction with Greenwoods Financial Group, acquiring three locations from its subsidiary Town Bank in southwestern Wisconsin. The transaction involves approximately $78 million in deposits, aimed at enhancing Greenwoods' presence in the region. Wintrust's CEO notes the focus on customer service continuity during the transition. The financial specifics of the deal remain undisclosed, and the acquisition is part of Wintrust's strategy for community banking growth.

Positive

• Acquisition of three branches enhances Greenwoods' market presence in Wisconsin.
• Transaction involves approximately $78 million in deposits, contributing to liquidity.
• Focus on continuity of customer service during the transition is a positive sign for stakeholders.

Negative

• Details of financial terms remain undisclosed, which may raise concerns about transparency.
• Integration challenges could arise from merging operations of Town Bank into Greenwoods.

ROSEMONT, Ill., April 23, 2021 (GLOBE NEWSWIRE) -- Wintrust Financial Corporation (“Wintrust”) (Nasdaq: WTFC) and Greenwoods Financial Group, Inc., the parent company of The Greenwood’s State Bank (“Greenwoods”), today announced the closing of a previously announced branch purchase and assumption transaction for three southwestern Wisconsin branch locations of Town Bank, N.A. (“Town Bank”), Wintrust’s wholly-owned subsidiary. The three branches subject to the transaction are located in Albany, Darlington and Monroe, Wisconsin. Through this transaction, Greenwoods assumed approximately $78 million of deposits and acquired the branch facilities and various other assets.

“We are pleased to complete this transaction which allows us to expand our presence in southern Wisconsin,” said Bill McDonald, CEO of Greenwoods. “We look forward to building upon the franchise that Town Bank established at these locations and continuing to provide its customers with a full array of community banking products and services.”

Jay C. Mack, President and CEO of Town Bank, said, “The closing of this transaction allows us to focus our efforts on our primary markets. Greenwoods is a wonderful banking organization and will work hard to ensure a smooth transition for the customers, colleagues and the local communities associated with these branches.”

The terms of the transaction are not being disclosed at this time.

About Wintrust

Wintrust is a financial holding company with assets of over $45 billion whose common stock is traded on the NASDAQ Global Select Market. Built on the "HAVE IT ALL" model, Wintrust offers 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, with over 170 banking locations located in the greater Chicago and southern Wisconsin market areas. Additionally, Wintrust operates various non-bank business units including business units which provide commercial and life insurance premium financing in the United States, a premium finance company operating in 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 and qualified intermediary services for tax-deferred exchanges.

About Greenwoods

Greenwoods, founded in 1884, is headquartered in Lake Mills, Wisconsin, and is a state‑chartered non-member bank. Greenwoods currently has locations in Jefferson, Green, Rock, Racine, Walworth, and Waukesha Counties. Greenwoods is a high touch, community focused bank centered on its customers. Greenwoods has the technology products of a larger bank but delivers its products and services with a hometown community bank style. Greenwoods’ experienced staff offers solutions to both personal and business banking needs. Greenwoods has local decision making and does its own loan underwriting, and its customers deal with bankers face to face. Greenwoods offers robust technology that allows its customers to access their accounts any time, day or night, both online or through its app on mobile devices, for business and personal banking products. Greenwoods partners with the local communities it serves, investing its assets through loans to its neighbors, friends, family, and local businesses.

Forward-Looking Information

This press release contains forward-looking statements within the meaning of the federal securities laws relating to the acquisition of certain assets and assumption of certain liabilities of Town Bank, a subsidiary of Wintrust, by The Greenwood’s State Bank, 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 disclosures contained in Wintrust's Annual Report on Form 10-K for the most recently ended fiscal year. Forward-looking statements speak only as of the date made and Wintrust undertakes no duty to update the information.

FAQ

What is the purpose of Wintrust's acquisition of Town Bank branches?

The acquisition aims to expand Greenwoods' market presence in southern Wisconsin and enhance their community banking services.

How much in deposits did Greenwoods acquire from the Town Bank branches?

Greenwoods assumed approximately $78 million in deposits from the three Town Bank branches.

What impact will this acquisition have on Wintrust's stock (WTFC)?

The acquisition could positively influence Wintrust's stock (WTFC) by expanding its customer base and increasing deposits, although integration challenges may pose risks.

When was the acquisition of the Town Bank branches completed?

The acquisition was completed on April 23, 2021.