Baylake Corp. to acquire NEW Bancshares, Inc.

Freeman Staff

May 8, 2015

STURGEON BAY - Baylake Corp. announced that it has entered into a definitive agreement to acquire NEW Bancshares, Inc. in a cash and stock transaction.

NEW is headquartered in Kewaunee and is the parent company of Union State Bank  a Wisconsin state-chartered bank, which operates four banking locations in the Kewaunee, Two Rivers and Green Bay markets. Founded in 1910, Union provides full-service retail, commercial and agricultural banking, as well as insurance and wealth management services, according to the announcement. As of March 31, Union had $87 million in assets, $48 million in loans and $77 million in deposits.

Under the terms of the merger agreement, Baylake Corp. will pay approximately $9.7 million in total consideration in the merger subject to adjustment as described in the merger agreement, approximately 60 percent of which will be paid in cash and 40 percent in company common stock, according to the announcement. The transaction is subject to regulatory and NEW shareholder approval, as well as certain closing conditions.

“The merger with Union will increase the (Baylake Corp.’s) market share in Kewaunee and Brown counties, and establish a presence in the Two Rivers market in northern Manitowoc County. Union’s customer base and diversified loan and deposit mix will be attractive and complementary additions. We expect to continue delivering personalized banking solutions to Union’s customer base, with an expanded array of products and services, including the introduction of several new wealth services products,” said Robert J. Cera, president and CEO of Baylake Corp. in a statement.