Wintrust Financial Corporation finalises merger with Macatawa Bank Corporation

Wintrust Financial Corporation has completed its acquisition of Macatawa Bank Corporation in a high-profile all-stock transaction valued at approximately $510.3 million. This strategic merger, first announced in April 2024, marks a significant expansion of Wintrust’s footprint into the West Michigan banking sector, effectively integrating Macatawa’s operations and reinforcing Wintrust’s community banking model.

Macatawa Bank, headquartered in Holland, Michigan, and known for its strong local presence, operates 26 full-service branches across Kent, Ottawa, and northern Allegan counties. As of June 30, 2024, Macatawa Bank reported assets of about $2.7 billion, deposits of $2.3 billion, and loans totaling $1.3 billion. The bank’s commitment to exceptional customer service mirrors that of Wintrust, which operates 15 community banks and over 170 locations across its existing network.

Timothy S. Crane, President and CEO of Wintrust, highlighted the strategic advantages of this acquisition, noting that Macatawa Bank’s robust core deposit base, high asset quality, and client-focused culture make it an ideal partner for expanding into West Michigan. Crane expressed confidence that the merger will enhance Wintrust’s competitive stance in the region, offering an expanded range of products and services to Macatawa Bank’s clients.

Richard L. Postma, who was Chairman of the Board at Macatawa before the merger, emphasised the benefits of retaining Macatawa’s local identity post-acquisition. Postma stated that the merger allows Macatawa to maintain its personalized service while integrating Wintrust’s advanced products and technologies. He stressed that the merger combines similar cultures and operating philosophies, ensuring continued strong community banking in West Michigan.

Under the terms of the merger agreement, Macatawa shareholders received Wintrust common stock as consideration for their shares. Specifically, each share of Macatawa was exchanged for 0.137 shares of Wintrust common stock, with cash paid for any fractional shares. The merger is expected to have a minimal impact on Wintrust’s earnings per share for 2024.

Morgan Stanley & Co. LLC acted as the financial advisor to Macatawa Bank Corporation, while Warner Norcross + Judd LLP provided legal counsel. On the other hand, ArentFox Schiff LLP served as the legal advisor to Wintrust. This comprehensive advisory support ensured a smooth and efficient merger process.

Post-merger, Macatawa Bank will become the 16th community bank subsidiary of Wintrust, uniquely positioned as the only Wintrust entity within Michigan. This acquisition aligns with a broader trend in the banking industry where larger institutions are absorbing smaller, community-focused banks to enhance their geographic and service reach while preserving a community-centric approach.

The merger not only consolidates Wintrust’s presence in the region but also integrates advanced financial services and technologies tailored to local needs. This strategic move underscores the growing importance of combining scale with local expertise in the evolving banking landscape.

What was the nature of the acquisition between Wintrust Financial Corporation and Macatawa Bank Corporation?

Wintrust Financial Corporation completed an all-stock transaction valued at approximately $510.3 million to acquire Macatawa Bank Corporation. This strategic move allowed Wintrust to significantly expand its presence into the West Michigan banking sector, integrating Macatawa’s extensive local network into its operations.

What are the strategic benefits of this merger for Wintrust Financial Corporation?

The acquisition of Macatawa Bank Corporation enhances Wintrust’s footprint in the West Michigan area, adding 26 full-service branches to its network. This merger not only increases Wintrust’s market reach but also complements its community banking model with Macatawa’s strong core deposit base and high asset quality.

How did the merger impact Macatawa Bank Corporation’s identity and operations?

Post-merger, Macatawa Bank retains its local identity, key employees, and branches under the Wintrust umbrella, operating as a separately chartered community bank. This approach ensures that Macatawa can continue to offer personalized service while benefiting from Wintrust’s broader range of products, technologies, and resources.

What does this merger signify for the banking industry in the U.S.?

The successful acquisition, which marks the largest U.S. bank deal of 2024, indicates a continuing trend where larger financial institutions are absorbing smaller community-focused banks. This could potentially lead to more mergers and acquisitions in the sector as banks aim to enhance their competitive edge and service offerings in various regions​.

What were the financial terms of the merger?

Macatawa shareholders received 0.137 shares of Wintrust common stock for each share of Macatawa they owned, with the overall transaction priced at $510.3 million. The deal is structured to be neutral to Wintrust’s earnings per share for 2024, minimizing financial disruption while aiming to enhance long-term shareholder value​.