Reduce liability for losses on commercial accounts by adhering to four requirements.
Wintrust Financial Plans to Acquire HPK Financial
Sept 19 - Wintrust Financial Corp. (Nasdaq:WTFC) has announced the signing of a definitive agreement to acquire HPK Financial Corp. HPK is the parent company of Hyde Park Bank and Trust Co., an Illinois state bank, which operates two banking locations in the Hyde Park neighborhood of Chicago.
Hyde Park Bank has an established history of serving its community dating back to its formation in 1928. As of June 30, 2012, it had approximately $390 million in assets and approximately $238 million in deposits. Hyde Park Bank's two banking facilities are located at 1525 East 53rd St. and 1311 East 57th St. in Chicago. Its flagship building, located at the corner of 53rd Street and Lake Park Avenue in the Hyde Park neighborhood, has served as a community anchor and retail gateway for more than three generations. Hyde Park Bank's approach to customer service is similar to that at each of the 15 Wintrust Community Banks and their more than 100 banking locations. From services, products, and staff, a high level of involvement between bank employees and customers has always been a top priority from senior management down.
Edward J. Wehmer, president and CEO of Wintrust, said, "This transaction provides a wonderful opportunity to expand our presence to the vibrant Hyde Park neighborhood of Chicago and helps us continue on our path to become Chicago's Bank. We look forward to continuing with the community banking approach that Hyde Park Bank has established and providing the local community with an expanded array of products and services."
Timothy G. Goodsell, CEO of Hyde Park Bank, stated, "We are excited about the opportunity to combine resources with Wintrust. 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." Goodsell emphasized that by joining forces with Wintrust, "the transaction allows us to continue focusing on serving our customers as we have for the past 84 years, while at the same time providing our customers with access to a wider range of products and services. We clearly see benefits for our customers, shareholders and employees and we look forward to joining the Wintrust family."
Subject to possible adjustment depending on HPK's equity at closing, the aggregate purchase price will approximate $27.5 million. In the merger, shares of HPK common stock outstanding will be converted into the right to receive merger consideration paid in a combination of cash and shares of Wintrust common stock.
The transaction is subject to approval by banking regulators and certain closing conditions. The transaction is expected to close late in the fourth quarter of 2012 and is not expected to have a material effect on Wintrust's 2012 earnings per share.
Wintrust is a financial holding company with assets of approximately $17 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 15 community bank subsidiaries, now with more than 100 banking locations located in the greater Chicago and Milwaukee market areas. Additionally, the company operates various non-bank subsidiaries 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, companies 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.