Green Bay, Wis.-based Nicolet Bankshares, Inc., is expanding into the Twin Cities market by acquiring Eau Claire, Wis.-based Charter Bankshares, Inc., and its subsidiary Charter Bank in an approximately $158 million stock-and-cash transaction.
The merger is expected to be complete in the third quarter of this year. The combined organization will operate under the Nicolet National Bank name and include more than $8.8 billion in assets and $7.3 billion in deposits.
The $1.1 billion Charter Bank has offices in Chetek, Wis.; and Twin Cities suburbs Chanhassen and Chaska, Minn. The bank is also building a new office in Chippewa Falls, Wis. The $7.6 billion Nicolet National Bank operates branches in northeast and central Wisconsin, the upper peninsula of Michigan, and northern Michigan. Following the merger, Paul Kohler will join Nicolet National Bank and lead the Western Wisconsin and Twin Cities markets as a senior management team member. Nicolet will appoint Brenda Johnson to the board.
“Much like Nicolet, Charter has a history of serving its customers and a deep-rooted commitment to community banking,” said Nicolet President and CEO Mike Daniels. “We have known and respected the leaders at Charter for a long time. Our banks are culturally similar in that we trust our local people to understand and serve the market. The magic of this opportunity is trust in the partnership and the people. This trust in a people-driven approach to the market has created shared success for Nicolet’s customers, employees, and shareholders, as well as the communities we serve. We are optimistic about our future together, and we will work hard to ensure a smooth transition.”
Charter shareholders are expected to receive approximately 1.26 million shares of Nicolet along with an approximately $38.8 million cash payment. The estimated transaction value is a 1.67 multiple of Charter’s adjusted tangible book value as of Dec. 31 and equates to approximately 12.4 times Charter’s 2021 tax-adjusted earnings per share. The transaction is expected to be accretive to Nicolet’s tangible book value per share. First full-year earnings per share accretion is expected to be in the high-single digits.
“As big banks have increasingly focused their attention on bigger customers and big cities, we were impressed that Nicolet has chosen to expand in places with similar strengths and needs to the markets Charter serves,” said Jeff Haloin, CEO of Charter Bankshares. “While Nicolet is certainly a bigger bank than we are with great resources that come with added size, they don’t think like a big bank. Local still matters to them just as it does to us, and we are confident that will resonate here.”
Hovde Group LLC served as financial adviser to Charter Bankshares, and Reinhart Boerner Van Deuren S.C. provided legal counsel. Nelson Mullins Riley & Scarborough LLP served as legal counsel to Nicolet.