Wintrust Financial Corp. said Tuesday that it signed an agreement to buy the Lansing-based parent of First National Bank of Illinois for an estimated $38.5 million.
Rosemont, Ill.-based Wintrust is acquiring First Lansing Bancorp Inc. and its eight banking locations in Chicago's south and southwest suburbs and Northwest Indiana, according to a company news release. Four of the locations are in Dyer, Lansing, Lynwood and South Holland.
The purchase price is subject to being adjusted based on the First Lansing Bancorp's equity at closing. First Lansing Bancorp shareholders will receive 40 percent cash and 60 percent Wintrust common stock.
The transaction is subject to approval by banking regulators and closing conditions. The deal is expected to close in the second quarter this year.
First National Bank of Illinois was established in 1945. As of Dec. 31, the bank had about $370 million in assets and $325 million in deposits. Wintrust has assets of about $17 billion.
Wintrust President and CEO Edward Wehmer said the acquisition is a "terrific" opportunity to expand the company's presence in its market area. Christopher Morrow, chairman of First National Bank of Illinois, said the timing was right for the sale and added that his family has served Lake, Will and Cook counties for three generations.
"We felt that now is the right time to expand our commitment by partnering with Wintrust, a substantial regional bank who shares our passion and expands our capacity to serve our communities," Morrow said.
Wintrust Financial operates 15 community banks that have more than 100 banking locations.
The company completed seven acquisitions of banking institutions last year including the Federal Deposit Insurance Corp.-assisted purchase of Crete-based First United Bank. First United Bank had a location in St. John that was subsequently closed.