Wintrust Financial Corporation announced the signing of a definitive agreement to acquire Generations Bancorp, Inc. (“Generations”). Generations, headquartered in Pewaukee, Wisconsin, is the parent company of Foundations Bank, a Wisconsin state-chartered bank, which operates one banking location in Pewaukee, Wisconsin. As of September 30, 2015, Foundations Bank had approximately $125 million in assets, approximately $72 million in loans and approximately $97 million in deposits.
Edward J. Wehmer, President and CEO of Wintrust, said, “This transaction provides a wonderful opportunity to expand and complement our market presence in Pewaukee, Wisconsin. We look forward to continuing with the community banking approach that Foundations Bank has established and to providing its customer base with an expanded array of products and services.”
John M. Hazod, President and CEO of Foundations Bank, stated, “We are excited about the opportunity to combine resources with Wintrust. This is a great opportunity to partner with a successful organization that is compatible with ours. We share a philosophy of offering highly personalized customer-oriented retail and commercial banking services.” Mr. Hazod emphasized that by joining forces with Wintrust, “the transaction allows us to continue focusing on serving our customers, while at the same time providing our customers with access to a wider range of products and services. We see many benefits for our shareholders and customers, and we look forward to joining the Wintrust family.”
Subject to possible adjustment, the aggregate purchase price will be approximately $30 million. Shares of Generations common stock outstanding at the time of the merger, including from the conversion of any Generations preferred stock, will be converted into the right to receive merger consideration paid in cash.
The transaction is subject to approval by banking regulators and Generations’ shareholders, and certain closing conditions. The transaction is expected to close late in the first quarter or early in the second quarter of 2016 and is not expected to have a material effect on Wintrust’s 2016 earnings per share.