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.