North Shore Bank acquires Bank of Kenosha

North Shore Bank announced late Friday that it had entered into an agreement with the Federal Deposit Insurance Corp. (FDIC) to purchase Kenosha-based Banks of Wisconsin, which does business as Bank of Kenosha.

According to a news release from North Shore Bank, the transaction is effective immediately, and under the terms of the agreement, North Shore Bank will purchase selected Bank of Kenosha assets and assume the deposits.

Bank of Kenosha branches, now part of North Shore Bank, are set to reopen on Saturday at their normal business hours.

The FDIC first classified the Bank of Kenosha as “undercapitalized” in August 2011. Bank of Kenosha received a second order in summer 2012 to raise capital or find a buyer. As of June 30, 2012, the bank had $154.7 million in assets, and 16.85 percent of its loans were noncurrent.

North Shore Bank chairman and chief executive officer James McKenna^[1] said deposits are protected in the transaction. All deposits assumed by North Shore Bank will continue to be insured by FDIC and are backed by North Shore Bank. Depositors are now customers of North Shore Bank and employees will be retained by North Shore Bank.

“We are pleased to extend this commitment to our new customers and employees in the Kenosha community," McKenna said. "North Shore Bank is one of the strongest banks in the country and Bank of Kenosha is a great fit. This acquisition allows us to serve more customers and sets the stage for the combined organization’s continued success.”

Bank of Kenosha had two branches in the Kenosha area — at 5117 Green Bay Road and 8056 39^th Ave. Prior to this transaction, North Shore Bank operated 45 branches throughout eastern Wisconsin and northeastern Illinois, including one in Kenosha at 6906 Green Bay Road.

“We have been doing business in Kenosha for 14 years, and we think it’s a great community with strong growth potential," McKenna said. "It’s a very positive move for customers of both banks and the Kenosha community.”

References

1. ^{^} James McKenna (feeds.bizjournals.com)