Eau Claire-based Citizens Community Bancorp, Inc., signed a deal to acquire United Bank from United Bancorporation, both based in Osseo, Wis., for $50.7 million in cash.
Acquisition of the $281 million United Bank will put $940 million Citizens Community just north of the $1 billion asset mark. Just last year, Citizens Community beefed up its Minnesota presence — and added about $270 million in assets — by buying Wells Federal Bank, Wells, Minn.
Located in northwest Wisconsin, United Bank is a full-service community bank with branches in Osseo, Strum, Eleva, Ettrick, Eau Claire and Mondovi. As of March 31, United Bank had $281 million in total assets, $214 million in loans, $240 million in deposits and $30 million in shareholders’ equity.
“The transaction is a transformative event for us in the Chippewa Valley, as it improves both the balance and mix of our deposit base and loan portfolio, improves our margins and earnings outlook and expands our franchise in our largest key market,” said Stephen Bianchi, president and CEO of Citizens Community. Bianchi joined the Wisconsin company two years ago from South Dakota’s HF Financial in the wake of its acquisition by Great Western Bancorp.
Trevor Bohland, United Bank’s president and CEO, will join the senior management team of Citizens Community Federal, N.A., after the deal closes in the fourth quarter.
“Given the challenges and opportunities of community banking today, the combined bank will be better positioned to meet the needs of our communities versus operating as two independent organizations,” Bohland said.
The transaction is expected to be immediately accretive to earnings and results in a tangible book value dilution earn back of approximately 4.4 years.
FIG Partners, LLC acted as financial advisor to Citizens in the transaction and delivered a fairness opinion to the Board of Directors of Citizens, and Briggs & Morgan, P.A. served as outside legal counsel to Citizens. Hovde Group, LLC acted as financial advisor to the Board of United, and Ballard Spahr LLP, served as legal counsel to United.