Mackinac Financial in Manistique, Mich., has agreed to buy Niagara Bancorp. in Niagara, Wis.
The $870 million-asset Mackinac said in a press release Tuesday that it will pay $7.3 million in cash for the $70 million-asset parent of First National Bank of Niagara. The deal is expected to close in the third or fourth quarter.
Mackinac said it plans to keep all of Niagara's four branches open. Niagara also has $35 million in loans and $60 million in deposits.
"This deal is a sound strategic fit for the company," Paul Tobias, Mackinac's chairman, said in the release. "The locations complement our current footprint and the economics of the deal meet the key metrics we require as a board and management team. We believe these new markets have good growth potential and are a natural and valuable addition."
Mackinac was advised by Piper Jaffray and Honigman Miller Schwartz & Cohn. Niagara was advised by Hovde Group, JK Law and Reinhart Boerner Van Deuren.