Wisconsin-based Associated Banc-Corp has agreed to acquire local lender Bank Mutual in an all stock deal worth around $482m.
The deal involves the merger of Bank Mutual with and into Associated, and merger of Bank Mutual’s banking subsidiary with and into Associated Bank, the banking subsidiary of Associated.
Associated, which serves over 100 communities across eight US states, said that the deal will help it “strengthen its Wisconsin network and expand services into nearly a dozen additional communities”.
As per the agreed terms of the transaction, shareholders of Bank Mutual will be entitled to receive 0.422 shares of Associated Banc-Corp common stock for each share held.
The deal already received the approval from the boards of directors of both companies. It is expected to be completed in the first quarter of 2018, subject to regulatory and shareholder approvals.
Bank Mutual president and CEO David Baumgarten will take up the responsibility of a consultant to the CEO of Associated post deal completion, while Bank Mutual chairman Michael Crowley, Jr. will join the merged entity’s board of directors.
Associated president and CEO Philip Flynn said: “The acquisition of Bank Mutual provides significant opportunity to increase our Wisconsin presence and improve the scale of our operations. Ultimately, this positions us to gain efficiencies while also making investments to better support the customer experience.”