Town Bank to be acquired for $41 million

Town Bankshares Ltd., the parent company of Town Bank in Delafield and Madison, has signed a definitive agreement to be acquired by Wintrust Financial Corp. for an estimated $41 million.
Town Bankshares founded Delafield State Bank in 1998 and changed its name to Town Bank last year, when it also opened a new location in Madison.
Jay Mack, president and chief executive officer of Town Bank, said customers will notice few changes when the acquisition is expected to close in October. The Town Bank name will be retained, Mack said.
"We don’t expect any disruption or dramatic change in the way we do business," Mack told Small Business Times. "If you look at the banks that they (Wintrust) own, they all have their own names. Wintrust is really invisible."
Town Bank had total assets of about $232 million as of March 31. Town Bank shareholders will receive about $129.10 per share in the transaction, which is still subject to regulatory approval and the approval of the shareholders of both companies.
Wintrust is a $5.0 billion asset financial holding company based in Lake Forest, Ill. Wintrust’s stock is publicly traded on the Nasdaq Stock Exchange (ticker symbol WTFC). Wintrust has 10 suburban Chicago bank subsidiaries.
Because the two companies have no overlap in territories, no branches will need to be closed after the acquisition, Mack said.
Mack said he will remain president and CEO of Town Bank, and his leadership team will remain intact. The acquisition will bring more accessible capital and lending capacity for Town Bank, he said.
"We want to add staff, not lose staff. We anticipate adding more people. With Wintrust coming on board here, we have an opportunity to grow and add additional locations in southeastern Wisconsin … Wintrust will be virtually invisible in our local markets."
In a prepared statement, Edward Wehmer, president and CEO of Wintrust, said, "This transaction is a terrific fit for both companies. Similar to Wintrust’s origin, Town Bank began as a de novo bank and shares our commitment to community banking and customer service. The merger will help fulfill Wintrust’s plans to continue expansion into the desirable suburban communities within the Chicago and Milwaukee market areas."
June 25, 2004, Small Business Times, Milwaukee, WI