Wisconsin bank M&A starts with a bang in 2022

Manitowoc, Wis.-based Bank First Corp. kicked off 2022 with a $118.0 million deal to acquire Denmark, Wis.-based Denmark Bancshares Inc., in its third acquisition in the Badger State since the start of 2019.

The transaction was the largest deal announced in the banking industry so far in January, according to S&P Global Market Intelligence data.

Once the deal closes, Bank First will have approximately $3.6 billion in assets, further solidifying its position as the third-largest community bank headquartered in Wisconsin.

Following an active 2019 in which 17 deals were announced with Wisconsin targets, deal-making activity slowed considerably in 2020 and 2021, to five and four deal announcements, respectively.

Green Bay-based Nicolet Bankshares Inc., the holding company of Nicolet National Bank, Wisconsin's largest community bank under $10 billion in assets, continues to post heady growth numbers aided by multiple acquisitions. Since the beginning of September 2021, Nicolet has closed on two acquisitions, buying Manistique, Mich.-based Mackinac Financial Corporation and Manitowoc, Wis.-based County Bancorp Inc. The transactions helped increase Nicolet's total assets by about $3 billion since the middle of 2021.

With an announced deal value of $218.1 million, Nicolet's acquisition of County Bancorp was the largest bank M&A deal involving a Wisconsin-based bank since Green Bay, Wis.-based Associated Banc-Corp announced it would acquire Milwaukee-based Bank Mutual Corp. for $482.3 million in July 2017.

Nicolet has announced four whole-bank acquisitions since the beginning of 2019.

Overall, Wisconsin community banks and thrifts posted mixed results in the third quarter of 2021, lagging the national median in both return on average equity and net interest margin. However, the state's community banks did post a lower median efficiency ratio and lower loan declines than the national mark.

In 2021, 90 bank branches were closed in Wisconsin and only 18 opened, as customers increasingly turned to digital channels and banks trimmed costs.