Wintrust Financial Corp., based on the Chicago suburb of Rosemont, Ill., announced a definitive agreement to acquire Rush-Oak Corp., the parent company of Oak Bank, which operates from a single location in the Gold Coast neighborhood of Chicago. As of Dec. 31, 2019, Oak Bank had approximately $196 million in assets, $143 million in loans and $158 million in deposits.
Edward J. Wehmer, president and CEO of Wintrust, said, “This transaction is a great opportunity to expand our market presence in the heart of the City of Chicago. Oak Bank has a wonderful reputation for providing outstanding customer service using a community banking approach. We look forward to continuing that tradition and the providing its customers with an expanded array of products, services and resources.”
Subject to possible adjustment, the aggregate purchase price (which takes into account the appreciated value of the real property, which is a premier location in the Gold Coast neighborhood) to ROC stockholders is currently estimated to be approximately $46 million. Shares of ROC common stock outstanding at the time of the merger will be converted into the right to receive per share merger consideration to be paid in cash.
“We are excited about the opportunity to combine resources with Wintrust,” said Roy E. Curran, president of Oak Bank. “This is a wonderful opportunity to partner with a successful organization that is like-minded in its philosophy of offering highly personalized customer-oriented banking services.”
Curran emphasized that by joining forces with Wintrust, “the transaction allows us to continue focusing on serving our customers as we have for nearly 50 years, while at the same time providing out customers with access to a wider range of products and services. We see many benefits for our customers and stockholders, and we look forward to joining the Wintrust family.”
Subject to approval by banking regulators and ROC’s stockholders and certain other closing conditions, the transaction is expected to close in the second quarter, and it is not expected to have a material effect on Wintrust’s 2019 earnings per share.