MILWAUKEE — Associated Banc-Corp
announced Thursday it has agreed to purchase Bank Mutual Corporation
for about $482 million, which will result in a merged company.
Bank Mutual’s bank subsidiary
will also merge with and into Associated’s bank subsidiary,
Associated Bank. It is an all-stock transaction valued at about $482
million, based on Associated’s Wednesday’s closing stock price of
$24.60 per share.
in Green Bay, 156-year-old Associated Bank N.A. is the largest bank
headquartered in Wisconsin. It serves more than one million
customers in 100 communities across eight states. Based in
Milwaukee, 125-year-old Bank Mutual is the holding company for the
largest Milwaukee-based bank. It serves more than 120,000 customer
accounts through banking locations in Wisconsin and Minnesota.
As a result of this transaction,
Associated will strengthen its Wisconsin network and expand services
into nearly a dozen additional communities.
“We have deep respect for Bank
Mutual and its dedicated team of colleagues. Both of our
organizations are built around customer-centric strategies and
understand the importance of delivering increasing value to
customers, colleagues, communities and shareholders,” said
Associated president and CEO Philip B. Flynn in a statement. “The
acquisition of Bank Mutual provides significant opportunity to
increase our Wisconsin presence and improve the scale of our
operations. Ultimately, this positions us to gain efficiencies while
also making investments to better support the customer experience.”
the terms of the merger agreement, which has been unanimously
approved by the boards of directors of both companies, Bank Mutual
shareholders will receive 0.422 shares of Associated common stock
for each share of Bank Mutual common stock.
Upon consummation of the merger,
Bank Mutual president and CEO David Baumgarten will serve as a
consultant to the CEO of Associated. In his new capacity, he will
focus on client retention and employee engagement while also serving
as an ambassador for the bank’s community involvement. Bank Mutual
chairman Michael T. Crowley, Jr. will be appointed to the combined
companies’ board of directors.