Wintrust Financial, the parent company of Macatawa Bank, has agreed to acquire Holland, Michigan-based Macatawa Bank at $14.85 per share, for around $510.3m.

Under the terms of the merger agreement, Wintrust will convert each share of Macatawa common stock into the right to receive merger consideration.

The merger consideration will be paid in the form of shares of Wintrust common stock based on Wintrust’s average trading price at closing.

The transaction is expected to close in the second half of this year, subject to certain customary closing conditions including regulatory approvals, and approval of Macatawa’s shareholders.

Macatawa president and CEO Jon Swets said: “Wintrust’s track record of serving families, individuals and businesses with exemplary products and services makes 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.

“Joining forces with Wintrust 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.”

Macatawa Bank is a Michigan state-chartered bank that operates a network of 26 full-service branches located in Kent, Ottawa and northern Allegan counties, including Grand Rapids.

Established in 1997, the bank had around $2.7bn in assets, $2.4bn in deposits and $1.3bn in loans, as of 31 December 2023.

Macatawa’s customer service approach matches with each of the fifteen Wintrust Community Banks and their more than 170 banking locations.

Morgan Stanley & Co. served as financial advisor and Warner Norcross + Judd as legal advisor to Macatawa, while ArentFox Schiff served as legal advisor to Wintrust, on this transaction.

Wintrust president and CEO Timothy Crane said: “Macatawa provides an ideal platform to expand into West Michigan with a very solid bank.

“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.”