Citizens Community Bancorp Inc., the parent company of Citizens Community Federal, N.A., Eau Claire, Wis., and F&M Bancorp of Tomah Inc., the parent company of Farmers & Merchants Bank of Tomah, Wis., announced an agreement for Citizens to acquire F&M and F&M Bank in a cash and stock transaction valued at approximately $21.6 million. F&M Bank, which has two branches in Tomah, has total assets of $194.6 million and total equity of $22.6 as of Sept. 30, 2018.
The combined franchise is expected to strengthen the presence and capacity of Citizens in an adjacent market to the Chippewa Valley region. F&M Bank was founded in 1911 and is the second-largest financial institution in Tomah with an approximate 20 percent market share of deposits in Monroe County.
“We are excited about this opportunity to grow our community banking franchise in central western Wisconsin,” said Stephen Bianchi, president and CEO of Citizens. “Adding the Tomah market will allow us to leverage our personnel, resources and knowledge and will allow us to better serve our new clients in and around the city of Tomah. We believe this acquisition will enhance shareholder value, as pro forma assets will exceed $1.4 billion. Additionally, the estimated tangible book value earn-back is expected to be approximately three years, and we will benefit immediately from additional core earnings on a per share basis. We expect the merger to close in the second calendar quarter, subject to the receipt of required regulatory approvals.
As of Sept. 30, 2018, Citizens had $975.4 million in assets. Following the completion of the sale of CCFBank’s Rochester Hills, Mich., branch, which is also expected to be completed in the second quarter, and the completion of the F&M Bank transaction, CCFBank is expected to have approximately $1.4 billion in assets through 28 locations.