Banner Banks, headquartered in Birnamwood, is expected to merge with Bank of Sun Prairie later this year.
BOSP Bancshares Inc., the holding company of Bank of Sun Prairie, and Banner Bancorp, Ltd. the holding company and sole shareholder of Banner Banks, have entered into a definitive agreement where BOSP Bancshares will acquire all of Banner Bancorp, Ltd.’s ownership interest in Banner Banks.
“All Banner Banks employees will be offered continued employment,” Banner Banks President and CEO D. Shannon Blakley said. “No Banner Banks locations will close as part of this transaction.”
Sun Prairie, located about 150 miles away in Dane County, is far enough away from Banner Banks’ branches that no office overlapping will occur, helping to ensure the local branches remain open.
The transaction, which is subject to customary closing conditions and regulatory approvals, has been unanimously approved by both the company’s and bank’s boards of directors and is expected to close in the fourth quarter of 2025. Post-closing, it is anticipated Banner Banks will be moved onto the Bank of Sun Prairie core system in the second quarter of 2026.
Bank mergers and acquisitions contribute to reshaping the banking industry by combining institutions to create larger, more competitive banks.
That, according to Banner Banks, is behind the merger.
An FAQ released by the local bank states, “Both banks are financially strong and well capitalized; however, both our organizations see tremendous synergies in combining our respective strengths into a single, larger, more competitive and even stronger financial institution, which will allow us to offer a broader range of products and services to all customers.”
Following the merger of the banks, the combined institution will have eight locations in six Wisconsin communities and total assets of about $868 million, based on regulatory reporting from Dec. 31, 2024.
Jimmy Kauffman, president and CEO of Bank of Sun Prairie, will serve as president and CEO, and Blakley will serve as a consultant.
“We were looking for another community bank to partner with that has a dedicated commitment to serving their communities and deeply values their customers and employees,” Blakley said. “We are also excited to know our customers will soon have access to new technologies, expanded loan products and enhanced deposit capabilities — well beyond what we offer today.
“We’ll also have access to a wider range of agricultural customers as we expand into all the markets the bank will operate in.”
Blakley said added benefits will include:
• New technologies, such as a full suite of online banking services including Zelle, TransferNow and online bill pay.
• Enhanced deposit account offerings.
• Expanded commercial and agricultural loan capabilities and larger lending limits.
• SBA lending.
• Additional residential and lending products.
• More mortgage choices and home equity options.
• A full suite of business solutions and cash management services.
Banner Banks was founded in 1900 and chartered in 1903. Through the operation of four bank office locations in Birnamwood, Hatley, Antigo and Wittenberg, the bank offers an array of traditional loan and deposit products and maintains an agricultural loan specialty.
As of Dec. 31, 2024, the bank had $126 million in assets and 23 full-time equivalent employees.
Bank of Sun Prairie was founded in 1897 and also chartered in 1903. The bank operates three office locations in Sun Prairie and Cottage Grove, as well as a financial literacy outlet inside Sun Prairie West High School.
“I look forward to welcoming our new colleagues and the customers of Banner Banks to our banking family and working with the entire Banner Banks team to bring the two banking organizations together as seamlessly as possible for the benefit of the bank’s customers and staff,” Kauffman said. “This is a great opportunity for Bank of Sun Prairie to diversify our balance sheet and expand our footprint. Alignment with another community bank with similar values and a long-standing track record in their community is a perfect fit for us.”
In addition to offering a full suite of lending and deposit products, the bank also provides wealth management, trust services and expanded business solutions.
As of Dec. 31, 2024, the bank had assets of $742 million and 99 full-time equivalent employees.
A public hearing on the merger application will be held by the Wisconsin Division of Banking if at least 25 residents of the state petition for a hearing within 30 days of final notice. Petitions must be filed with the Division of Banking, P.O. Box 7876, Madison. WI 53707-7876.
Comments can also be filed in writing with the regional director of the FDIC at its regional office at 300 S. Riverside Plaza, Suite 1700, Chicago, Illinois, 60606, no later than Sept. 8.
kpasson@newmedia-wi.com