Bank First Corporation to acquire rival Hometown Bancorp for $124m

Bank First Corporation has agreed to acquire rival Wisconsin-based bank holding company Hometown Bancorp in a stock and cash deal worth around $124 million.

While Bank First Corporation is the holding company of Bank First, a nationally-chartered community bank based in Manitowoc, Hometown Bancorp is the parent company of Hometown Bank, a state-chartered bank based in Fond du Lac.

Bank First Corporation has total assets of around $2.9 billion. Its subsidiary operates 21 branches that serve Wisconsin. Additionally, Bank First Corporation holds a stake of 49.8% in bank technology outfitter UFS, LLC, which provides digital, core, managed IT, cybersecurity, and cloud services to banks across the US Midwest.

In January 2022, Bank First Corporation signed a deal worth around $119 million to acquire Wisconsin-based Denmark Bancshares, the parent company of Denmark State Bank. The deal is yet to be closed.

On the other hand, Hometown Bancorp has total assets of around $627.6 million. Hometown Bank serves customers located mainly within central and northeastern Wisconsin with commercial, mortgage, and consumer loans apart from providing deposits and savings plans.

Tim McFarlane — Hometown Bancorp President and CEO said: “By joining with Bank First, we found an opportunity to align with a partner that shares our passion for providing personalized customer service and shows a genuine concern for the well-being of our employees, customers, and communities.

“We see a great opportunity to complement Bank First’s strengths while leveraging their capabilities to add value to our customers in the form of leading-edge technology and a large breadth of retail and business offerings.”

As per the terms of the deal, Hometown Bancorp’s shareholders will have the choice to be paid either $29.16 in cash or issued 0.3962 of Bank First Corporation’s shares as consideration.

Mike Molepske — Bank First Corporation President and CEO said: “We are excited to welcome Tim McFarlane and the relationship focused team of bankers at Hometown to Bank First. I’ve had the pleasure of knowing Tim throughout my banking career and working with him as well.

“I am looking forward to collaborating with Tim and his team as we combine our organizations. Together, we will provide exceptional value to our employees, customers, and shareholders.”

The deal, which is subject to regulatory approval, Hometown Bancorp’s shareholders’ approval, and other conditions, is expected to close in Q4 2022.