LAKE FOREST, Ill., July 18 /PRNewswire-FirstCall/ -- Wintrust Financial Corporation ("Wintrust") today announced the signing of a definitive agreement to acquire Broadway Premium Funding Corporation ("Broadway") from Sumitomo Corporation of America. Since 1999, Broadway has been providing financing for commercial property and casualty insurance premiums, mainly through insurance agents and brokers in the northeastern portion of the United States and California.
"This transaction is a great opportunity for both companies," stated Edward J. Wehmer, President and CEO of Wintrust. "The transaction will help fulfill Wintrust's plans to continue expansion in the premium finance business. Broadway serves a sector of the premium finance industry that is complementary to markets we currently serve through our First Insurance Funding Corporation subsidiary. Broadway has a terrific operating culture, solid growth and profit potential, and a dedicated management team."
"We are excited about the opportunity to combine resources with Wintrust," said Louis Caruso, Broadway's Vice Chairman and President. "We anticipate our business continuing to thrive as a result of our established client relationships and the highly personalized approach we use to develop and serve our customer base. This is a great opportunity to partner with a successful organization that is similarly-minded in their philosophy of offering highly personalized, customer-oriented premium finance services. Wintrust's financial capabilities will accelerate our expansion."
Scot Feuerzeig, Broadway's CEO and COO, emphasized that by joining forces with Wintrust, "Our customers will continue to work with the same Broadway staff and will also gain access to a wider range of products and services. We clearly see benefits for our customers and employees, and we look forward to joining the Wintrust family."
Terms of the Transaction
The full terms of this cash transaction are not being disclosed by the parties. The transaction is subject to approval by various regulatory bodies and certain closing conditions. The transaction is expected to close late in the third quarter of 2007 and is not expected to have a material effect on Wintrust's 2007 earnings per share. Colonnade Advisors LLC served as exclusive financial advisor to Sumitomo Corporation of America and Broadway in the transaction.
Broadway will continue to maintain its brand name and operational independence, and the existing experienced management team will continue to lead the company.
About Broadway Premium Funding Corp.
Broadway is a commercial finance company that specializes in financing insurance premiums for corporate entities. The company's products are marketed through insurance agents and brokers to their small to mid-size corporate clients. Broadway is headquartered in New York City and services clients primarily in the northeastern United States and California. Broadway was founded in 1999 by Mr. Caruso and Mr. Feuerzeig and is now believed to be one of the top 12 insurance premium finance companies in the United States with approximately $60 million of premium finance receivables. The company's website address is http://www.broadwaypremium.com/.
About Wintrust Financial Corporation
Wintrust is a financial holding company whose common stock is traded on the Nasdaq Stock Market . Its 15 community bank subsidiaries are: Lake Forest Bank & Trust Company, Hinsdale Bank & Trust Company, North Shore Community Bank & Trust Company in Wilmette, Libertyville Bank & Trust Company, Barrington Bank & Trust Company, Crystal Lake Bank & Trust Company, Northbrook Bank & Trust Company, Advantage National Bank in Elk Grove Village, Village Bank & Trust in Arlington Heights, Beverly Bank & Trust Company in Chicago, Wheaton Bank & Trust Company, State Bank of The Lakes in Antioch, Old Plank Trail Community Bank, N.A. in New Lenox, St. Charles Bank & Trust Company and Town Bank in Delafield, Wisconsin. The banks also operate facilities in Illinois in Algonquin, Bloomingdale, Buffalo Grove, Cary, Chicago, Clarendon Hills, Darien, Downers Grove, Frankfort, Geneva, Glencoe, Glen Ellyn, Gurnee, Grayslake, Highland Park, Highwood, Hoffman Estates, Island Lake, Lake Bluff, Lake Villa, Lindenhurst, McHenry, Mokena, Mundelein, North Chicago, Northfield, Palatine, Prospect Heights, Ravinia, Riverside, Roselle, Sauganash, Skokie, Spring Grove, Wauconda, Western Springs, Willowbrook and Winnetka, and in Elm Grove, Hartland, Madison and Wales, Wisconsin.
Currently, Wintrust operated a total of 78 banking offices and is in the process of constructing several additional banking facilities.
Additionally, the Company operates various non-bank subsidiaries. First Insurance Funding Corporation, one of the largest commercial insurance premium finance companies operating in the United States, serves commercial loan customers throughout the country. Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out- sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States. WestAmerica Mortgage Company engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices. Guardian Real Estate Services, Inc. of Oakbrook Terrace provides document preparation and other loan closing services to WestAmerica Mortgage Company and its network of mortgage brokers. Wayne Hummer Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest. Wayne Hummer Asset Management Company provides money management services and advisory services to individual accounts. Wayne Hummer Trust Company, a trust subsidiary, allows Wintrust to service customers' trust and investment needs at each banking location. Wintrust Information Technology Services Company provides information technology support, item capture and statement preparation services to the Wintrust subsidiaries.
Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 relating to the proposed acquisition of Broadway Premium Funding Corp. and integration of Broadway Premium Funding Corp. with Wintrust, the combination of their businesses and projected revenue, as well as profitability and earnings outlook. Actual results could differ materially from those addressed in the forward-looking statements due to factors such as changes in economic conditions, unanticipated changes in interest rates that negatively impact growth, competition and the related origination of loan products, unforeseen delays in completing the transaction, slower than anticipated development and growth of Broadway Premium Funding Corp.'s business or unanticipated business declines, unforeseen difficulties in integrating the acquisition or higher than expected operational costs, unforeseen changes in the premium finance industry, difficulties in adapting successfully to technological changes as needed to compete effectively in the marketplace, and the ability to attract and retain experienced key management. Therefore, there can be no assurances that future actual results will correspond to these forward-looking statements.
