Wintrust Financial Acquires Macatawa Bank for $510.3MM

Wintrust Financial entered a definitive agreement to acquire Macatawa Bank Corporation, the parent company of Macatawa Bank, a Michigan state-chartered bank headquartered in Holland, MI, that operates a network of 26 branches located throughout communities in Kent, Ottawa and northern Allegan counties, including Grand Rapids, MI. Wintrust will acquire Macatawa in an all-stock transaction.

Founded in 1997, Macatawa had approximately $2.7 billion in assets, $2.4 billion in deposits and $1.3 billion in loans, as of Dec. 31, 2023.

“Macatawa provides an ideal platform to expand into west Michigan with a very solid bank,” Timothy S. Crane, president and CEO of Wintrust, said. “The bank has a strong core deposit base, exceptional asset quality, a client focused culture and a committed leadership team. Together, we will be a formidable, community-minded competitor to the other banks in the area. We look forward to the combined synergies that our two firms can realize while providing Macatawa’s customers with an expanded array of products and services.”

“Wintrust provides Macatawa with the ability to retain and enhance its uniquely personalized consumer and commercial community presence in the west Michigan area by retaining the Macatawa Bank name, its key employees, branches and a legally constituted community bank board as a separately chartered bank,” Richard L. Postma, chairman of the board of Macatawa, said. “We anticipate a seamless transition to becoming the 16th successful community bank subsidiary of Wintrust and the only subsidiary located within the state of Michigan. We are confident that this transaction, which combines similar cultures and operating philosophies, will result in a continued community bank that offers all the enhanced services, products and technology of Wintrust to meet the evolving banking needs of our customers.”

“This transaction brings together two companies that share a core community banking philosophy,” Jon W. Swets, president and CEO of Macatawa, said. “Wintrust’s track record of serving families, individuals and businesses with exemplary products and services make it an attractive partner. This partnership offers our customers, employees and communities the long-term benefits that being part of a successful, growing and caring organization brings. [It] allows us to continue focusing on serving our customers and growing our presence by providing our customers with access to a wider range of products, services and resources. We see many advantages for our customers and shareholders, and we look forward to joining the Wintrust family.”

Subject to possible adjustment as provided in the merger agreement, the aggregate purchase price to Macatawa shareholders is currently estimated to be approximately $510.3 million, or $14.85 per share. In the transaction, each share of Macatawa common stock outstanding will be converted into the right to receive merger consideration paid in shares of Wintrust common stock based on Wintrust’s average trading price at closing, determined in accordance with the merger agreement.

The transaction is subject to approval by banking regulators, approval of Macatawa’s shareholders and other customary closing conditions. The transaction is expected to close in the second half of 2024 and is not expected to have a material effect on Wintrust’s 2024 earnings per share.

Morgan Stanley acted as financial advisor and Warner Norcross + Judd acted as legal advisor to Macatawa in the transaction. ArentFox Schiff served as legal advisor to Wintrust.

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