GREEN BAY, WI (WTAQ) – A major bank merger involving Nicolet and Baylake banks is taking shape.
Both banks on Tuesday announced a deal which would create the largest community bank north of Milwaukee and the 4th largest based in Wisconsin by deposit market share.
“By uniting two strong community banks, we will be able to leverage the strengths of each to create a real difference to our shareholders, customers and to the communities we serve,” said Bob Atwell, founding Chairman and CEO of Nicolet.
Based on the financial results as of June 30, 2015, the combined company would have total assets of $2.2 billion, deposits of $1.8 billion and loans of $1.6 billion.
The combined company will also have an expanded geography with 41 branches in Northeast and North Central Wisconsin and the Upper Peninsula of Michigan.
“Closing is expected sometime in the first half of 2016 and Nicolet National Bank will be the surviving entity,” said Mike Daniels, President and COO of Nicolet National Bank, who will remain in downtown Green Bay. “Nicolet Bankshares and Nicolet National Bank will have their headquarters right here on Washington Street.”
“We are extremely pleased to announce the combination of these two great Wisconsin community banks,” said Rob Cera, President and CEO of Baylake. “Our similar cultures, customer-first approach, service strengths and geographies make this a perfect fit.”
Daniels says it’s unclear how many jobs will have to be cut as part of the merger, calling it, “phase two” of their plan.
According to a release, the combined company’s leadership team will be compromised of executives from both organizations. Bob Atwell and Rob Cera will serve as co-Chairmen and CEOs of Nicolet Bankshares, Inc. Mike Daniels will serve as President and CEO of Nicolet National Bank. The board of directors will be comprised of 8 directors each from Nicolet and Baylake.
The merger agreement has been unanimously approved by the board of directors of each company. It is still subject to customary closing conditions, including approval by shareholders of each company and regulatory approvals.
TRANSACTION INFORMATION
The release goes on to detail that Baylake shareholders will receive a fixed ratio of 0.4517 shares of Nicolet common stock for each share of Baylake common stock. This implies a transaction value of $15.02 per share of Baylake stock or approximately $141 million in aggregate consideration based upon Nicolet’s closing price of $33.25 as of September 8, 2015.
In addition, Baylake expects to declare and pay a special dividend of $0.40 per share to Baylake shareholders prior to the closing of the merger.
Prior to the closing of the transaction, Nicolet plans to be listed on NASDAQ as “NCBS”.
