April 15 (Reuters) - Wintrust Financial Corp will acquire Macatawa Bank Corp for $510.3 million in an all-stock transaction, the companies announced on Monday, helping expand in Michigan.

The transaction is expected to close in the second half of 2024, and the proposed deal will fetch Macatawa shareholders about $14.85 per share, a premium of 49.5% over Monday's close.

Shares of Macatawa jumped about 40% in aftermarket.

After a nearly two-year dry spell, mergers and acquisitions are bouncing back in 2024 on strong expectations of interest rate cuts and a rally in the markets.

The deal will help Wintrust expand its footprint in West Michigan, CEO Timothy Crane said.

Morgan Stanley is the financial adviser to the deal. (Reporting by Pritam Biswas in Bengaluru; Editing by Alan Barona)