Bank First Corporation has agreed to purchase Denmark Bancshares (Denmark), the parent of Wisconsin state-chartered lender Denmark State Bank.
Bank First will pay around $119m in cash and stock to acquire 100% of the common stock of Denmark.
As per the agreed terms, each shareholder of Denmark will be entitled to receive either $38.10 in cash or 0.5276 of a share of Bank First’s common stock for each share held.
Denmark had around $687.6m in assets, $479.4m in gross loans, $614.5m in deposits and $68m in consolidated stockholders’ equity at the end of December 2021.
Bank First CEO and president Mike Molepske said: “Together, we will continue our shared mission of building meaningful relationships and strengthening the communities we serve by providing value-driven financial solutions and giving back through volunteerism and philanthropic initiatives.”
The deal, which awaits regulatory and shareholders’ approval, is expected to close in the third quarter of 2022.
Bank First expects to benefit from greater deposit market share in Northeast Wisconsin and Denmark’s expertise in agricultural banking.
According to the financials on 31 December 2021, the combined entity will have $3.6bn in assets, $2.7bn in loans and $3.2bn in deposits.
Denmark State Bank CEO and president Scot Thompson said: “We look forward to working together to maintain our tradition of community banking in Northeastern Wisconsin. This partnership strengthens our team, provides an enhanced suite of products to our customers and adds value to our loyal shareholders.”