Fond du Lac, Wis.-based Hometown Bancorp Ltd. agreed to acquire Poynette, Wis.-based United Community Bank.
The transaction, which is subject to regulatory approval, is expected to close in the fourth quarter. The terms of the deal were not disclosed.
United Community Bank is anticipated to merge with Hometown Bancorp unit Hometown Bank in early 2019.
As of March 31, Hometown Bank had $296.1 million in assets, SNL data shows. United Community Bank, whose ultimate parent is John T. Vucurevich Foundation, had $178.5 million in assets as of the same date.
For reference, SNL valuations for bank and thrift targets in the Midwest region between June 15, 2017, and June 15, 2018, averaged 159.02% of book, 166.86% of tangible book and had a median of 20.57x last-12-months earnings, on an aggregate basis.
Hometown Bancorp, as a result of the deal, will enter Columbia County, Wis., with three branches to be ranked fourth with a 7.55% share of approximately $1.31 billion in total market deposits. It will also enter Dane County, Wis., with one branch to be ranked No. 28 with a 0.27% share of approximately $17.21 billion in total market deposits.
Hovde Group LLC, led by Kirk Hovde and Doug Hillhouse, was United Community Bank's financial adviser.
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