Associated Banc-Corp in Green Bay, Wis., has agreed to buy American National in Omaha, Neb.
The $44 billion-asset Associated said in a press release that it will pay $604 million in stock for the $5.3 billion-asset parent of American National Bank. The deal, which is expected to close in the second quarter, priced American National at 114% of its tangible book value.
American National has 33 branches, $3.8 billion of loans, and $4.7 billion of deposits in Nebraska, Minnesota, and Iowa.
“We’re excited for the opportunity to welcome American National clients, team members and communities to Associated,” Andy Harmening, Associated’s president and CEO, said in the release.
The acquisition “accelerates our growth strategy by deepening our presence in the Twin Cities, establishing our presence in the attractive Omaha market, and broadening our reach across the Midwest,” he added.
The deal is expected to be 2% accretive to Associated’s 2027 earnings per share. It should take a little over two years to earn back an estimated 1.2% dilution to Associated’s tangible book value.
Associated plans to cut a quarter of American National’s annual noninterest expenses. Associated expects to incur $47 million of merger-related expenses.
Wende Kotouc, American National’s co-CEO and co-chair, will join Associated’s board. John Kotouc, the other co-CEO and co-chair, will serve as a consultant.
Evercore and Wachtell, Lipton, Rosen & Katz advised Associated. Piper Sandler and Alston & Bird advised American National.