Merchants & Manufacturers Bancorporation Inc. announced it is embarking on a series of strategic initiatives to reduce debt, increase efficiency and enhance shareholder value.
In late December, Merchants entered into a sale-and-leaseback agreement of its New Berlin headquarters building. The sale enabled the company to decrease its debt.
On Jan. 4, Merchants entered into a definitive agreement to sell some assets of one of its subsidiary banks, Fortress Bank Minnesota, to the Eastwood Bank of Rochester, Minn. As a result of the transaction, Eastwood Bank will purchase $43 million in deposits and $25 million in loans. The remaining assets will be sold or absorbed into other Merchants subsidiaries. Merchants will use the proceeds from the sale to reduce debt. The acquisition is subject to regulatory approval, which is expected to allow for the transaction to take place by April.
In the second quarter of 2007, Merchants expects to combine two of its banks, Lincoln State Bank and Franklin State Bank. Both banks currently serve the greater Milwaukee market.
Michael Murry, chairman of the company, said, "During the second half of 2006, the board of directors held a series of strategic planning meetings of which several actions were recommended and approved. While more changes will be announced as it becomes appropriate, the transactions we are announcing today are important, as we believe the changes will allow us to become more efficient and better utilize our capital going forward."
Through its Community Financial Group network, Merchants operates seven banks in Wisconsin: Community Bank Financial, Fortress Bank, Franklin State Bank, Grafton State Bank, Lincoln State Bank, The Reedsburg Bank and Wisconsin State Bank. The company also operates Fortress Bank Minnesota and Fortress Bank Cresco in Iowa. Combined, the banks operate 48 offices with more than 100,000 clients and total assets of $1.5 billion.
Merchants & Manufacturers Bancorporation reduces debts
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