Premier Community Bank in Marion, Wis., announced Tuesday that it is expanding into central Wisconsin with a deal to buy four branches from Baylake Bank (BYLK) of Sturgeon Bay, Wis.
Most of Premier's eight branches are in eastern Wisconsin, outside of Green Bay, and the deal for the four Baylake branches — in the towns of Waupaca, King, Manawa and Fremont — would extend its reach.
Baylake did not say why it is selling the four branches, but all are somewhat removed from its primary markets; most of its other 23 branches are in communities along or near Lake Michigan, including Green Bay, Sturgeon Bay and Kewaunee. Also, the $1.1 billion-asset bank was only recently released from a federal enforcement action that required it to reduce its level of problem loans and bolster its capital levels.
Aside from the physical locations, the $200 million-asset Premier would gain roughly $69 million of deposits and nearly $36 million of loans in the deal.
The companies did not disclose a sale price. The deal is expected to close in the early fall.