Manitowoc, Wis.-based Bank First has entered into an agreement to acquire fellow Wisconsin institution Denmark State Bank in an approximately $119 million, stock-and-cash transaction.
The $688 million Denmark Bancshares, Inc., is the bank holding company of Denmark State Bank, which has seven banking offices in Denmark, Bellevue, Howard, Lawrence, Reedsville, Shawano and Whitelaw, Wis. The combined organization is expected to have approximately $3.6 billion in total assets.
The transaction will close in the third quarter of this year and is expected to increase the $3 billion Bank First’s deposit share in northeast Wisconsin. Under the agreement, each Denmark shareholder will be able to receive either $38.10 in cash per share or 0.5276 of a share of Bank First’s common stock in exchange for each share of Denmark common stock.
“We are thrilled to unite with Denmark State Bank and expand our footprint in Wisconsin,” stated Mike Molepske, president and CEO of Bank First. “Similar to Bank First, Denmark is a long-standing organization focused on relationship banking. Bank First and Denmark date back to 1894 and 1909, respectively. Together, we will continue our shared mission of building meaningful relationships and strengthening the communities we serve by providing value-driven financial solutions and giving back through volunteerism and philanthropic initiatives.”
Hovde Group LLC served as an exclusive financial advisor and issued a fairness option to Bank First’s holding company, Bank First Corp. Piper Sandler & Co. was the financial advisor to Denmark. Godfrey & Khan S.C. served as legal counsel to Denmark.
“We look forward to working together to maintain our tradition of community banking in northeastern Wisconsin,” stated Scot Thompson, president and CEO of Denmark State Bank. “Our core values at Denmark State Bank include integrity, honesty and exemplary customer service, and Bank First is the ideal partner to carry these values forward for years to come. This partnership strengthens our team, provides an enhanced suite of products to our customers and adds value to our loyal shareholders.”