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In what would be its first open-bank acquisition in five years, Wintrust Financial Corp. in Lake Forest, Ill., announced Tuesday that it is acquiring Elgin State Bancorp Inc. in Elgin, Ill., for $13.8 million in cash and stock.
July 26
Wintrust Financial Corp. in Lake Forest, Ill, said Wednesday that second-quarter earnings fell 10% from a year earlier, to $11.8 million.
The $14.6 billion-asset company said it earned 25 cents a share in the quarter, missing the average analysts' estimate by a nickel, according to Thomson Reuters. A year earlier, to company benefited from a large bargain purchase gain from failed bank acquisitions.
Chris McGratty, an analyst at KBW Inc.'s Keefe, Bruyette & Woods, wrote in a research note that the miss was due to a higher-than-expected loan-loss provision, even though the provision fell 30% from a year earlier, to $29.2 million.
McGratty wrote that strong loan growth may have forced the company to maintain a higher provision. Wintrust's loan portfolio grew 5.2% from a year earlier, to $10.1 billion, excluding loans that are covered by loss-share arrangements with the Federal Deposit Insurance Corp.
Through multiple banks, Wintrust has struck several failed bank deals since the financial crisis. On Tuesday the company said it would buy the $288 million-asset Elgin State Bancorp Inc. in Elgin, Ill., for $13.8 million in cash and stock, marking Wintrust's first open-bank transaction in more than five years.
