Nicolet National Bank in Green Bay, Wis., is buying Mid-Wisconsin Bank of Medford in a deal that would combine one of the state's oldest banks with one of its newest.
The companies announced last week that Nicolet would acquire the $462 million-asset Mid-Wisconsin for about $10.2 million in stock.
The deal would establish Nicolet as the sixth-largest bank based in Wisconsin with $1.1 billion of assets and 22 branches in the northern part of the state. It would be the first ever deal for Nicolet, which was founded in 2000 by a group of local bankers and business leaders.
"This merger represents an important step in the growth of Nicolet," said Bob Atwell, chairman and chief executive of Nicolet and its parent company, Nicolet Bankshares. "Our objective is to build a community bank of sufficient size to flourish in all economic environments. Size matters and our goal is to serve our customers for the long haul."
Mid-Wisconsin was founded in 1890 as the State Bank of Medford and was rebranded in 1994 following its acquisitions of two small banks in nearby communities. The company has struggled with problem loans of late, reporting a loss of $3.6 million last year and a loss of $2.3 million through the first six months of this year, according to the Federal Deposit Insurance Corp.
Under terms of the sale, Mid-Wisconsin shareholders would receive slightly more than one-third of a share of Nicolet stock for each share owned. Investors who own just a small number of Mid-Wisconsin shares would be paid in cash.
The sale is expected to close in next year's second quarter.