Wisconsin-based Farmers and Merchants Bank of Kendall selling to in-state peer

Farmers and Merchants Bank of Kendall is selling itself to fellow Wisconsin-based FS BancShares Inc., the parent company of Ergo Bank.

Financial terms of the transaction were not disclosed.

S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Nov. 2, 2021, and Nov. 2, 2022, averaged 152.60% of book and 157.48% of tangible book and had a median of 15.98x last-12-months earnings, on an aggregate basis.

With the completion of the deal, FS BancShares will enter Monroe County, Wis., with three branches to be ranked fifth with a 7.47% share of approximately $878.3 million in total market deposits.

Farmers and Merchants Bank of Kendall has about $80 million in assets. FS Bancshares has total assets of approximately $145 million. The Kendall, Wis.-based bank has three branches, which are located in Kendall, Norwalk and Wilton.

Oak Ridge Financial was the exclusive financial adviser of Farmers and Merchants Bank of Kendall.

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