First Federal Bank of Wisconsin will complete its acquisition of Milwaukee-based Mitchell Bank by the new year, FFBW told BizTimes Media today.
Waukesha-based FFBW entered an agreement to buy in cash the assets and assume the liabilities of Mitchell Bank, the bank announced in July. The purchase price is expected to range from $4.7 million to $4.9 million, according to a document filed with the U.S. Securities and Exchange Commission.
FFBW has agreed to assume approximately $44 million in customer deposits and purchase approximately $17 million in loans from Mitchell Bank, according to a press release.
First Federal president and chief executive officer Edward Schaefer said the acquisition will allow the bank to expand further into the Milwaukee market where the bank operates a branch in Bay View.
“The acquisition will also provide us with core deposits to fund our continued growth,” Schaefer said in a statement. “Our intention is to grow our franchise through organic growth and, if opportunities arise, acquisitions. We believe that the acquisition of Mitchell Bank is a nice first step in the execution of our business objectives.”
FFBW has three offices in Waukesha County while Mitchell Bank has two branches – one located on Mitchell Street in Milwaukee and another on National Avenue in New Berlin. Schaefer said the two Mitchell Bank branches will initially operate under its original name following the acquisition.
As of June 30, 2020, FFBW had $293.3 million in assets and $202.6 million in total deposits, according to the Federal Deposit Insurance Corporation.