Suburban, headquartered in Elmhurst, Illinois, was the parent company of Suburban Bank & Trust Company (SBT), an Illinois-state chartered bank, which operates ten banking locations in Chicago and its suburbs.
Effective with the closing of the transaction, SBT’s locations will operate as branches of Wintrust’s subsidiary, Hinsdale Bank & Trust Company.
Since its formation in 1976, SBT has served its communities with exceptional personal service, great products and convenience. As of March 31, 2015, SBT had approximately $488 million in assets, approximately $293 million in loans and approximately $426 million in deposits.
Edward J. Wehmer, President and CEO of Wintrust, said, "This transaction allows us to expand into the desirable Elmhurst market in a meaningful way and complement our growing presence in other suburban markets. We look forward to continuing the community banking approach that SBT established and to providing their customer base with an expanded array of products and services.
"Several of Wintrust’s community banks will have branches that share market areas with the acquired Suburban branches. As a result of those branch overlaps, we expect to combine approximately six branches during the second half of 2015."
Donald A. O’Day, President of Suburban, stated, "We are excited about partnering with a successful organization that shares a similar philosophy of offering customers highly personalized customer-oriented retail and commercial banking services." Mr. O’Day emphasized that by joining with Wintrust, "the transaction allows us to continue focusing on serving our customers, while at the same time providing our customers with access to a wider range of products and services."
Terms of the Transaction
The aggregate purchase price was approximately $12.5 million. In the merger, outstanding shares of Suburban’s common stock were converted into the right to receive cash merger consideration.
The transaction is not expected to have a material effect on Wintrust’s 2015 earnings per share.
