Wintrust Financial has signed a definitive agreement to acquire Rush-Oak (ROC), the parent company of an Illinois state-chartered lender Oak Bank, for $46m.
The deal is expected to strengthen Wintrust presence in Chicago, where Oak Bank operates a branch location.
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Oak Bank acquisition: Details
As per the terms of the agreement, 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.
Additionally, the Oak Bank shares owned by individual minority shareholders will be transferred to ROC for an aggregate value of $9m.
Following the completion of the deal, Oak Bank will become a wholly-owned subsidiary of ROC.
As of 31 December 2018, Oak Bank had around $196m in assets, $143m in loans and $158m in deposits.
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By GlobalDataWintrust president and CEO Edward Wehmer 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 to providing its customers with an expanded array of products, services and resources.”
The Oak Bank acquisition is expected to close in the second quarter of this year, subject to regulatory and ROC’s stockholder approval.
With assets of around $31bn, Wintrust operates fifteen community bank subsidiaries in the US. Overall, the company operates more than 160 banking locations across Chicago and southern Wisconsin region.
