Wintrust Financial to acquire Macatawa Bank Corporation in $510.3m deal

Wintrust Financial Corporation (Nasdaq: WTFC) is set to acquire Macatawa Bank Corporation (Nasdaq: MCBC) in an all-stock transaction valued at approximately $510.3 million, or $14.85 per share, marking a strategic expansion into West Michigan’s banking sector. This merger will unite Wintrust’s broad network of community banking services with Macatawa’s strong local presence in Holland, Michigan, and its surrounding areas.

The merger is poised to combine the strengths of both banks to serve the communities in Kent, Ottawa, and northern Allegan counties more effectively. Macatawa Bank, known for its commitment to local community banking, operates 26 full-service branches and as of December 31, 2023, boasts assets of approximately $2.7 billion, $2.4 billion in deposits, and $1.3 billion in loans. Wintrust, with its significant assets totaling approximately $57 billion, extends its community-oriented banking model, which blends the sophistication of big banks with personalized local banking, to a new region.

Timothy S. Crane, President and CEO of Wintrust, expressed enthusiasm about the merger, noting, “Macatawa provides an ideal platform to expand into West Michigan with a very solid bank. 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.”

On the other side, Richard L. Postma, Chairman of the Board at Macatawa, emphasized the benefits of retaining a local touch post-merger, stating, “Wintrust provides Macatawa with the ability to retain and enhance its uniquely personalized consumer and commercial community presence in the West Michigan area.”

Subject to regulatory and shareholder approvals, the merger is slated for completion in the second half of 2024. Each share of Macatawa common stock will be converted into Wintrust common stock shares, based on Wintrust’s average trading price at closing as defined in the merger agreement. This merger is not expected to have a material effect on Wintrust’s 2024 earnings per share.

Morgan Stanley & Co. LLC served as financial advisor, and Warner Norcross + Judd LLP served as legal advisor to Macatawa. ArentFox Schiff LLP provided legal counsel to Wintrust, ensuring a smooth merger process.

Post-merger, Macatawa will become the 16th community bank subsidiary of Wintrust, uniquely positioned within the State of Michigan. This transaction is expected to bring together similar cultures and operating philosophies, enhancing service offerings and introducing advanced technologies to meet the evolving banking needs of their customers.

This merger between Wintrust and Macatawa highlights a significant trend in the banking industry where larger institutions are absorbing smaller, community-focused banks to broaden their geographic and service reach while maintaining a community bank ethos. Such strategic alliances are vital for both expansion and the integration of advanced financial services, tailored to local needs.