Old Plank Trail Community Bank, National Association, a wholly-owned subsidiary of Wintrust Financial, has purchased some assets and liabilities and banking operations of Illinois-based First United Bank of Crete in an FDIC-assisted transaction.
FDIC data states that First United Bank had $328m in total assets and $316m in total deposits as of 30 June 2012 and currently operates in Crete, Frankfort and Steger, as well as in St. John, Indiana.
As part of the transaction, all of Illinois-based bank’s assets were acquired at a discount of approximately 9.3% and assumed all of the non-brokered deposits at a premium of 0.60%.
Old Plank also entered into a loss sharing agreement with the FDIC, pursuant to which the former will share in losses with the FDIC on certain loans and foreclosed real estate at First United Bank.
Wintrust president and CEO Edward Wehmer said, "This transaction is another step for Wintrust as we continue to increase our role as Chicago’s Bank."
"This FDIC-assisted transaction provides a great opportunity to expand our presence in the southern suburbs of Chicago, where we currently operate Old Plank Trail Community Bank."
First United Bank locations will reopen and operate as a branch of Old Plank Trail Bank with depositors continue to have full access to their deposits, including ATM or debit cards, and checks.
Wintrust operates fifteen community bank subsidiaries, with over 100 banking locations located in the greater Chicago and Milwaukee market areas.