Baylake Corp. in Sturgeon Bay, Wis., has agreed to buy New Bancshares in Kewaunee, Wis.
The $989 million-asset Baylake said in a press release Friday that it will pay $9.7 million in cash and stock for the $87 million-asset parent of Union State Bank. The transaction is expected to close in the third quarter or early in the fourth quarter.
Union State has four branches, $48 million in loans and $77 million in deposits. Baylake said it expects the transaction to be accretive to earnings after the implementation of certain operational cost savings, including the consolidation of two overlapping branches.
"The merger... will increase the company's market share in Kewaunee and Brown counties, and establish a presence in the Two Rivers market in northern Manitowoc County," Robert Cera, Baylake's president and chief executive, said in the release. "Union's customer base and diversified loan and deposit mix will be attractive and complementary additions."