Wintrust Financial Buys Failed Bank in Illinois

Wintrust Financial in Rosemont, Ill., has agreed to buy another failed bank from the Federal Deposit Insurance Corp.

The Illinois Department of Financial and Professional Regulation closed the $328 million-asset First United Bank in Crete on Friday. Wintrust's Old Plank Trail Community Bank agreed to pay a 0.6% premium for the failed bank's $316.9 million in deposits. The FDIC and the Old Plank Trail also agreed to a loss-share agreement on $172.7 million of First United's assets.

The FDIC estimates that the failure will cost the Deposit Insurance Fund $48.6 million. So far this year, 43 banks have failed, including seven in Illinois.

First United is the third failed bank that the $16 billion-asset Wintrust (WTFC) has acquired so far this year and its ninth since April 2010.

"This FDIC-assisted transaction provides a great opportunity to expand our presence in the southern suburbs of Chicago," Edward J. Wehmer, Wintrust's president and chief executive, said in a press release.

For reprint and licensing requests for this article, click here.
M&A Community banking Law and regulation Illinois
MORE FROM AMERICAN BANKER