Wintrust Financial has inked a definitive agreement to acquire First Lansing Bancorp (FLB), for an aggregate purchase price of nearly $38.5m, which is subject to possible adjustment based on FLB's equity at closing.
FLB manages seven banking branches in the south and southwest suburbs of Chicago, and one office in northwest Indiana.
A combination of nearly 40% cash and almost 60% shares of Wintrust common stock will be paid as merger consideration to outstanding shares of FLB common stock.
Pending receipt of regulatory approval and satisfying certain closing conditions, the transaction is expected to complete during the second quarter of 2012.
Wintrust president and CEO Edward Wehmer said, "This transaction provides a terrific opportunity to expand our presence in the southern part of our market area and helps us continue on our path to become Chicago’s Bank."
Founded in 1945 and headquartered in Lansing, Illinois, FLB operates as the parent company of First National Bank of Illinois (FNBI). As of 31 December 2012, the bank had nearly $370m in assets and almost $325m in deposits.
Having $17bn in assets, Wintrust manages 15 community bank subsidiaries, with more than 100 bank branches currently located in the greater Chicago and Milwaukee market areas.