Bank First acquiring Partnership Bank

The parent company of Bank First said Wednesday it plans to buy Cedarburg-based Partnership Bank for $41 million, giving the Manitowoc financial institution its first branch presence in metro Milwaukee.

Bank First, the ninth-largest bank headquartered in Wisconsin, will acquire branches in Cedarburg, Mequon, Watertown and Tomah when the deal closes this summer.

“We are very excited to be uniting with Partnership Bank and increasing our footprint in Wisconsin,” Mike Molepske, president and chief executive of Bank First National Corp., said in a statement announcing the transaction. “With Partnership’s community involvement, strong deposit base, superior credit quality, and relationship model of banking, it was evident from the start this would be the perfect fit for both banks as well as their employees, customers and shareholders.”

Bank First has assets of about $1.8 billion and 18 branches, mostly in northeast Wisconsin. Partnership Bank has four full-service branches and assets of around $307 million.

When the transaction closes, Partnership branches will be rebranded to the Bank First name.

The parent company of Partnership Bank, Partnership Community Bancshares Inc., evolved from the leadership of the former Ozaukee Bank.

Ozaukee Bank, a popular hometown bank, was sold in 2008 to Harris Bank — now known as BMO Harris Bank.

But Dean Fitting, who had been chief

executive of Ozaukee Bank before retiring in 2005, wanted to get back into banking. He raised more that $10 million to launch Partnership Community Bancshares. The company purchased First Bank in Tomah, and opened Partnership Bank in Cedarburg in 2012, making it the bank holding company’s headquarters in 2014.

Under terms of the agreement announced Wednesday, each Partnership shareholder will have the option to receive either slightly more than $17.38 in cash or 0.35047 of a share of Bank First’s common stock in exchange for Partnership common stock.

The agreement has been approved by the boards of both companies, but still needs regulatory approval and the OK of Partnership shareholders. The target closing date is July 12.

Bank First, which posted a profit of $25.5 million in 2018, said the deal complements customer relationships it already has in Ozaukee County and would give those customers closer access to branches.

Among benefits to Partnership customers in the deal, Bank First said, would be a closer connection to insurer Ansay & Associates, a firm in which Bank First has a 30 percent ownership stake.

Bank First has 275 employees and Partnership has 73.

Bank First said the two banks would evaluate management roles and responsibilities for the combined organization, including David Braaten, Partnership’s president and CEO.

“Dave is focused on bringing synergy between the two organizations and working closely with the transition team making sure the organizations align,” Debbie Weyker, vice president of marketing for Bank First, said in an email.

She indicated Bank First has no plans to dispose of the Tomah branch it will acquire, even though it is far away from most of Bank First’s branch network.

“Yes, the Tomah branch will open as a Bank First branch once the merger is complete,” she said. “We are excited about the geographical fit, as both our senior lender and the head of our agricultural lending team live close to the Tomah branch.”