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CCB extends Minnesota presence with Wells Financial
Posted on Monday, 20 March 2017 12:52
Citizens Community Bancorp (CCB) is carrying out its second acquisition in 12 months after signing off on bolstering its market presence and capacity in southern Minnesota by taking over Wells Financial for USD 39.80 million.
The cash and stock deal equates to USD 51.18 apiece, which represents a price to earnings multiple of 16.8 times and 124.3 per cent price to book value.
It is expected pave the way for an entity with USD 940.00 million in assets, USD 725.00 million in loans, USD 750.00 million in deposits and 25 branches throughout the northwest and southern Minnesota.
Wells Financial was incorporated in December 1994 for the purpose of acquiring all of the issued and outstanding common stock of Wells Federal Bank in April 1995, at which time the lender simultaneously converted from a mutual to a stock institution.
The now state chartered bank has one subsidiary, Wells Insurance Agency, thought it bought and merged St James Federal Savings and Loan Association into itself in in July 2015.
Wells Federal currently has 9 locations in the counties of Faribault, Blue Earth, Martin, Nicollet, Freeborn, Steele and Watonwan, locations which are mainly rural and contain some 50 communities ranging in population size.
Its main lending concentration is in the Mankato/North Mankato and Owatonna areas, which have a relatively large inhabitant base, and historically the economy of its markets have been dependent on agriculture and related industries.
Meanwhile, CCB was organised in 2004 to provide consumer, commercial and agricultural banking activities through its wholly-owned subsidiary Citizens Community Federal NA, being a federally chartered national bank with 16 full-service offices.
The group originates commercial, agricultural, residential, consumer and commercial and industrial loans and accepts deposits from customers, primarily in Wisconsin, Minnesota and Michigan
It bought Community Bank of Northern Wisconsin in May last year and the deal for Wells Financial appears to be its largest to date.
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