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Bank First cuts a deal for Timberwood
Posted on Thursday, 21 November 2019 14:23
Bank First is carrying out its second acquisition of 2019 by taking over Tomah Bancshares, the parent of state-chartered Timberwood Bank, for USD 32.60 million to bolster its market share in Wisconsin’s Monroe country.
The all-scrip deal provides greater access to capital to finance additional business growth in the city of Tomah and is also billed as preserving community banking though the continued support of local causes benefitting the economy.
Furthermore, Bank First currently serves the USD 88.30 billion agricultural market in Wisconsin and the acquisition is expected to support this side of its operations.
Timberwood has one local branch and had USD 193.00 million in consolidated assets, USD 127.00 million in net loans, USD 155.00 million in deposits and USD 20.00 million in shareholders’ equity, as of 30th September 2019.
Based on the financial results as of September 30, 2019, the combined company is expected to have total assets of USD 2.40 billion, net loans of USD 1.80 billion and deposits of USD 2.00 billion.
Timberwood said it will benefit from Bank First’s 49.8 per cent ownership of UFS, a data process company based in Grafton and provides technology services to financial institutions based in the Midwest.
Access to this affiliate provides “the buying power of a large regional bank, creating opportunities to access the latest advancements in banking technology at a faster rate than our peers”.
Zephyr, the M&A database published by Bureau van Dijk, shows 83 acquisitions of Wisconsin-based banks have been announced in 2019 to date.
At the top end of the scale is First Horizon’s takeover of Iberiabank for USD 3.94 billion, which is followed by Chemical Financial’s pending USD 3.50 billion purchase of TCF Financial.
The aggregate value of acquisitions targeting banks based in the state so far this year have already exceeded the USD 21.57 billion recorded for the whole of 2018.
© Zephus Ltd