After John Connolly — the much-loved president of a fourth-generation, family-owned community bank in western Minnesota — suddenly passed away in 2020, the shareholders and management of West 12 Bancorporation and its wholly owned bank subsidiary, State Bank of Danvers, revisited its strategic plan. They ultimately determined the 121-year-old institution would need to acquire or be acquired to keep up with the ever-changing financial landscape.

Challenge

With shareholders and management facing this important decision, the bank’s longtime vice president, Brady Olson, seamlessly transitioned to bank president and navigated its operations throughout COVID-19 and a rising interest rate environment. After thoughtful consideration, the bank believed it would make a desirable acquisition for a larger community or regional bank company because of its clean loan portfolio, long-standing reputation in its community and loyal customer base. The bank was determined to find a partner that would honor its legacy and culture and stay committed to the highest level of personal service.

Solution

Olson contacted Wipfli LLP, the bank’s tax advisor, and was referred to Wipfli Corporate Finance Advisors, LLC. The bank was impressed by the collaborative yet confidential nature, as well as the operational efficiency it would provide the bank during the rigorous sale process. Additionally, the trust and goodwill earned through State Bank of Danvers’ experience with Wipfli’s tax team helped management feel confident in choosing Wipfli Corporate Finance to navigate its transition.

Olson said, “We knew immediately after being introduced to Wipfli Corporate Finance that it was the right fit. They understood our situation. We didn’t look at another candidate because of how sincere their demeanor and passion were for helping us accomplish our goals.”

After discussing the bank’s goals for the sale, Wipfli Corporate Finance created a detailed investment memorandum and market study of potential partners within the bank’s relevant geography. Several months of market exploration and various meetings with the most qualified prospects yielded one candidate that stood out from the rest: Lake Central Financial and its wholly owned bank subsidiary, Lake Central Bank. The chemistry was there from the start. “Community, culture, customers, even personality-wise — everything was a fit with Lake Central,” said Olson.

Lake Central Financial expressed a desire to collaborate with State Bank of Danvers and find ways to achieve growth together without deviating from the core values of either bank. Lake Central knew of and respected State Bank of Danvers’ reputation and recognized the value of keeping all employees post-transaction.

100% of employees retained

$270 million in consolidated total assets

Zero customer losses as a result of the acquisition

Results

Announced in April 2023, the acquisition closed in August 2023 following regulatory approval. State Bank of Danvers achieved its goal of finding a partner that shares similar community banking values and with deep roots in its local communities. State Bank of Danvers’ customers continue to receive the same level of service from the same staff they’ve built relationships with, with the added benefit of additional products and services now available to them on behalf of Lake Central Financial. 

Olson noted that he appreciated the seamless efficiency Wipfli Corporate Finance provided in getting to closing less than six months after initial conversations. He said, “Wipfli Corporate Finance laid the process out in an easy-to-understand timeline, so we knew exactly what to expect, and we didn’t deviate from that plan. Everything went as scripted. We had to trust what they were telling us, and they were spot on.”

The expanded resources gained as a result of the deal have empowered the collective banks to pursue new growth opportunities and enhance technology, including their electronic bill payments, person-to-person payments and mobile deposit platform.
 

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