American bank holding firm Citizens Community Bancorp has agreed to acquire United Bank from its parent company United Bancorporation in a cash deal valued at approximately $50.7m.

Citizens Community Bancorp is the parent company of Citizens Community Federal bank (CCFBank).

United Bank operates as a full-service community bank and manages branch offices in Osseo, Strum, Eleva, Ettrick, Eau Claire and Mondovi.  United Bank had $281m in total assets as of 31 March 2018.

The merger is expected to boost the presence and capacity of Citizens in the Chippewa Valley, while offering stable, low cost funding to support loan growth and creating operational efficiencies. The merged entity will have nearly $1.2bn in assets through 28 locations.

Citizens stated that the transaction will be immediately accretive to earnings and result in a tangible book value dilution earn back of almost 4.4 years. Estimated cost savings are expected to be more than 40% of United Bank’s operating expenses.

Citizens president and CEO said: “We are excited about this opportunity to combine two independent community banking franchises into one of the largest banks in northwest Wisconsin.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The pooling of our personnel, resources and knowledge will allow us to make “More Possible” through enhanced capabilities, operational efficiencies, and community outreach.

“It will also provide us with deeper product offerings and increased lending capacity to better serve our clients and our communities.  We believe this acquisition will enhance shareholder value as we increase our franchise beyond the $1bn threshold in assets and continue to grow core earnings on a per share basis.”

The transaction, which has been approved by the board of directors of both companies, is expected to conclude in fourth quarter of 2018, subject to customary conditions, including the approvals of bank regulatory agencies.

Additionally, Citizens also inked a securities purchase agreement and a registration rights agreement pursuant to which the company expects to sell an aggregate of 500,000 shares to a limited number of institutional and other accredited investors for aggregate gross proceeds of $65m.