Wisconsin banks reach agreement

Northwestern Financial Review, Jul 15-Jul 31, 2002

Merchants & Manufacturers Bancorporation, Inc., New Berlin, Wis., has reached a definitive agreement to acquire Fortress Bancshares, Inc., Westby, Wis. Fortress, with assets of $207 million, is a multi-bank holding company that owns three separately chartered community banks located in Wisconsin, Minnesota and Iowa. All seven of Fortress's branch.locations are located within a 50-mile radius of La Crosse, Wis.

The transaction is expected to close in the fourth quarter and be immediately accretive to Merchants' earnings.

"All three Fortress community banks have strong management teams with tremendous relationships in the communities they serve,"said Michael J. Murry, chairman of Merchants & Manufacturers Bancorp.

"Furthermore, the Fortress banks are well positioned to help our organization capitalize on the growth occurring along the Mississippi River in Wisconsin, Iowa and Minnesota."

"This combination will allow each of our banks to retain their identity while utilizing the capital and operational resources of a larger holding company," said Donald A. Zellmer, president, CEO and chairman of Fortress Bancshares. "The capacity gained by joining Merchants will allow each of our Fortress banks to expand."

Merchants currently holds four Wisconsin community banks under the name Community BancGroup: Lincoln State Bank; Grafton State Bank; Franklin State Bank; and Community Bank of Oconto County, Oconto Falls.

Fortress Bancshares, Inc. holds three community banks. All three banks share the Fortress name but maintain separate bank charters in the states of Wisconsin, Minnesota and Iowa. Fortress Bank of Westby, Wis., has $100 million in assets and additional branches in West Salem, Chaseburg and Coon Valley. Fortress Bank N.A., Houston, Minn., has $49 million in assets and a branch in Winona. Fortress Bank of Cresco, Iowa, has $57 million in assets.