A long-time Tomah financial institution has been sold.
Citizens Community Bancorp, the parent company of Citizens Community Federal, announced an agreement Tuesday to purchase F&M Bank of Tomah.
F&M Bank was founded in 1911 and, according to a Citizens press release, is the second largest financial institution in Tomah with 20 percent market share in Monroe County.
Citizens Community Bancorp is headquartered in Eau Claire and operates nine branches in Wisconsin, nine in Minnesota and one in Michigan.
The release said F&M Bank CEO Pete Reichardt "will continue his role leading CCF Bank's business activities in the Tomah market."
“Our team looks forward to working with the Citizens team to serve our clients,” Reichardt said. “Given the challenges and opportunities of community banking today, the combined bank will be better positioned to meet the needs of our communities. I look forward to joining Citizens’ senior leadership team and helping integrate the companies and expand in the area. We share a common set of values and a vision that will provide significant benefits to our customers and shareholders.”
Reichardt said F&M has 40 full-time equivalent employees. He said the employees reacted positively to the news.
"I was very proud of how they reacted," he said. "I think a lot of them look at this as a great opportunity."
The transaction, subject to approval from F&M shareholders and bank regulators, is valued at $21.6 million. Stephen Bianchi, president and CEO of Citizens, expects the purchase to close by the end of June.
“We are excited about this opportunity to grow our community banking franchise in central/western Wisconsin,” Bianchi said. “Adding the Tomah market will allow us to leverage our personnel, resources and knowledge."
Reichardt said Citizens has a good record of community involvement.
"They have a long-time history of being actively involved in the communities they serve," he said.
It's the second acquisition by Citizens in less than a year. Citizens purchased Osseo-based United Bank last June.