Nicolet Bankshares in Green Bay, Wis., has agreed to buy Charter Bankshares in Eue Claire, Wis.
The $7.7 billion-asset Nicolet said in a press release Wednesday that it will pay $158 million in cash and stock for the $1.1 billion-asset Charter. The deal, which is expected to close in the third quarter, priced Charter at 167% of its tangible book value.
“Charter has a history of serving its customers and a deep-rooted commitment to community banking,” Mike Daniels, Nicolet’s president and CEO, said in the release.
“We have known and respected the leaders at Charter for a long time,” Daniels added. “The magic of this opportunity is trust in the partnership and the people.”
The deal is expected to produce high-single-digit accretion for Nicolet’s 2023 earnings per share. It should also be accretive to Nicolet’s tangible book value.
Nicolet said it plans to cut a quarter of Charter’s annual noninterest expenses. The company expects to incur $9.5 million of merger-related expenses.
Brenda Johnson, who chairs Charter, is expected to join Nicolet’s board. Paul Kohler, Charter’s president and CEO, will join Nicolet’s senior management team and will lead its western Wisconsin and Twin Cities markets.
Nicolet said it plans to close its loan production office in Eau Claire.
Nelson Mullins Riley & Scarborough advised Nicolet. Hovde Group and Reinhart Boerner Van Deuren.