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Wintrust Financial (WTFC) Agrees to Acquire STC Bancshares

Zacks Equity Research

Wintrust Financial Corporation WTFC has entered into a definitive agreement to acquire STC Bancshares Corp., the parent company of STC Capital Bank. The closing of the transaction, which is subject to approval by banking regulators and STC’s shareholders, is expected in third-quarter 2019.

Per the terms of the deal, each of STC’s common stock outstanding will be converted into the right to receive merger consideration paid in nearly 50% cash and 50% of Wintrust Financial’s common stock based on Wintrust Financial’s average trading price at closing.

Notably, the aggregate purchase price (including the value of in-the-money outstanding unexercised stock options) is estimated at nearly $47.7 million, subject to possible adjustments.

The transaction is not expected to have any material impact on Wintrust Financial’s earnings per share (EPS) in 2019.

Wintrust Financial’s president and CEO, Edward J. Wehmer, stated, “This transaction is a great opportunity to expand and complement our market presence in the western suburbs of the Chicago metropolitan area. STC Capital Bank has a wonderful reputation for providing outstanding customer service using a community banking approach.”

Christopher D. Woelffer, STC’s president said, “By joining forces with Wintrust, STC Capital Bank’s customers will not only retain very high levels of customer service but will also gain access to a wider range of products and services. We clearly see benefits for our customers, shareholders and employees and we look forward to joining the Wintrust family.”

STC Capital Bank is a state-chartered bank based in Illinois. It presently has five banking offices in the communities of St. Charles, Geneva and South Elgin, IL.

Wintrust Financial operates 15 community bank subsidiaries, with over 160 banking locations in the greater Chicago and Southern Wisconsin market areas.

Shares of Wintrust Financial have lost 25.4% over the past year compared with 18.9% decline of the industry it belongs to.

Currently, the company carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the finance space are Cohen & Steers, Inc. CNS, BlackRock, Inc. BLK and Franklin Resources, Inc. BEN.

Over the past 60 days, Cohen & Steers has witnessed an upward earnings estimate revision of 6.9% for 2019. Its shares have gained 45.3% so far this year. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, the Zacks Consensus Estimate for BlackRock’s current-year earnings has been revised 4.4% upward. The company’s shares have gained 11.5% year to date. The stock currently carries a Zacks Rank #2 (Buy).

Franklin Resources also sports a Zacks Rank of 1 at present. It has witnessed an upward earnings estimate revision of 7.9% for fiscal 2019, over the past 60 days. Its share price has increased 11.3% so far this year.

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Wintrust Financial Corporation (WTFC) : Free Stock Analysis Report
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