Single Page | 
Multiple Pages
Home > BizTimes Daily > Archives > October 14, 2008
National Bancshares to acquire First Wisconsin Bank & Trust
Published October 14, 2008 - BizTimes Daily
QCR Holdings Inc. has signed an agreement to sell its Milwaukee subsidiary, First Wisconsin Bank & Trust, to National Bancshares Inc. for approximately $13.5 million.
Pending regulatory approval, the transaction is expected to close near the end of 2008. The transaction will result in a gain of approximately $.5 million, after taxes and related expenses.
Immediately prior to the proposed transaction, Moline, Ill.-based QCR Holdings intends to repurchase 121,246 shares of QCR Holdings stock currently owned by National Bancshares in its investment portfolio of various bank holding company securities. The amount of the redemption, if conducted today, is expected to be approximately $1.6 million, based on the current stock price.
National Bancshares Inc. is a $1.1 billion bank holding company headquartered in Bettendorf, Iowa.
"The current banking and capital market environments look very different today than they did in 2006 when we expanded our footprint into the Milwaukee market," said Doug Hultquist, president and chief executive officer of QCR Holdings. "In particular, the de novo banking environment has changed significantly, resulting in a longer period of start-up losses than first projected. Our expansion into the Milwaukee market in 2006 required that we devote more resources, particularly capital, to that charter. At that time it was much easier to raise capital in our industry. The current banking and economic environments call for the best and most strategic use of capital, and we feel confident that our strategy to focus on our Quad-Cities, Cedar Rapids and Rockford charters, and our leasing subsidiary, M2 Lease Funds, is the most efficient and cost effective use of our capital."
One of the significant factors influencing the purchase by National Bancshares was that three of the four senior officers at First Wisconsin had previously worked with Dan Westrope, president and CEO of National Bancshares. Westrope previously was the CFO of State Financial Bank of Milwaukee, where he and the three senior officers were employed prior to State Financial's sale to Associated Bank.
"I am excited to be back in the Milwaukee market and working with the talented team at First Wisconsin," Westrope said. "First Wisconsin has made great strides in growing loans and deposits since 2006 and we intend on continuing the successful expansion of the institution."
