M&I keeps buying in Twin Cities, this time Century Bank

Northwestern Financial Review, Jan 1, 2002 by Bengtson, Tom

The Twin Cities buying spree by Milwaukee-based Marshall & Ilsley Corp., continued last month when Wisconsin's largest bank announced it will buy Century Bancshares, Inc., of Eden Prairie, Minn. The deal, publicized Dec. 4, comes a month after the holding company announced it will buy Richfield Bank & Trust Co. Last summer, M&I announced it would purchase Minneapolis' National City Bank. All three banks eventually will be folded into the holding company's Minnesota operations, functioning under its bank charter in Milwaukee.

Century Bank, with $325 million in assets, has three offices: its headquarters in Eden Prairie, and branches in Coon Rapids and St. Louis Park. M&I is buying the bank for $66 million in cash and M&I stock. Subject to regulatory approvals, the transaction is expected to be complete by the end of the second quarter. The price is 2.37 times Century Bank's book value and 13.8 times its last 12 month's earnings.

"The Century Bank offices will add an important component to our Minneapolis growth strategy," commented James B. Wigdale, M&I chairman and CEO.

Sheldon Z. Wert, chairman of Century Bank, will remain with the bank after the acquisition, said M&I's spokesperson, Mike Hatfield, senior vice president. Wert founded the bank in 1991. It is a business bank, focusing on small and medium size businesses in suburban Twin Cities locations.

"The combination of National City, Richfield and Century Banks will create a formidable presence in the Minneapolis market," commented Wert. "Management at M&I is already coordinating input from local executives of the three banks and that bodes well for its success in Minnesota."

Upon completion of the acquisition, M&I will have 12 offices in the Twin Cities area, in addition to its 215 locations in Wisconsin and 25 offices in Arizona. Upon completion of all pending acquisitions, M&I Corp., will have assets of $28.325 billion.

Hatfield said M&I was contacted in early October by an investment banking firm about the availability of Century Bancshares. Century Bank, with $265 million in loans and $270 million in deposits, reported earnings through the first six months of 2001 of $4.048 million. For all of 2000, the bank reported earnings of $4.013 million. Century Bank's 85 employees will bring M&I's total Twin Cities workforce to 585 people.

Hatfield suggested that M&I's buying spree in Minnesota may be tapering off. "I'm not sure how much is there," he said. "Mostly what's left are single-bank locations.

"At this point, we are going to have some integration issues to deal with."

By Tom Bengtson