LAKE FOREST, IL-Wintrust Financial Corp. has taken over First Chicago Bank & Trust, and has agreed to purchase about $880.7 million of the failed bank’s assets and assumed all its deposits. The Illinois Department of Financial and Professional Regulation closed First Chicago and appointed the Federal Deposit Insurance Corp. as receiver.
The seven branches of First Chicago have reopened under Wintrust subsidiary Northbrook Bank & Trust Co. Wintrust President and CEO Edward Wehmer said his firm now has 12 bank locations within the city of Chicago.
“This transaction further complements our strategy of expansion into the city of Chicago and adds suburban locations in Itasca, Norridge and Park Ridge, markets in which we previously did not have a physical presence, while expanding our presence in Bloomingdale,” Wehmer said in a statement Monday. “We believe this transaction will be accretive to Wintrust’s net income and earnings per share.”
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His firm paid the FDIC a 0.5% premium to assume First Chicago’s $887.5 million in deposits. The failed bank had about $959.3 million in total assets, of which Wintrust agreed to purchase $880.7 million. The company entered into a loss-share agreement with the FDIC on almost $700 million of the assets. The agreement is projected to maximize returns on the assets covered by keeping them in the private sector, according to an FDIC statement.
First Chicago is the 49th FDIC-insured institution to fail in the country this year, and the fifth in Illinois. The most recent bank failure in the state was Western Springs National Bank and Trust, which was closed in early April. The other three banks to close this year in Illinois include Community First Bank Chicago, Valley Community Bank in St. Charles and the Bank of Commerce in Wood Dale. A total of 11 FDIC-insured banks have been closed this year in the Midwest.
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