Wisconsin-based S.B.C.P. Bancorp Inc. and Monona Bankshares Inc. agreed to combine in a merger of equals.

S.B.C.P. Bancorp is the holding company for State Bank of Cross Plains, while Monona Bankshares is the holding company for Monona Bank. The MOE will create the largest bank headquartered in Dane County, Wis., and the sixth largest bank headquartered in Wisconsin, with nearly $3 billion in combined assets, according to an announcement posted on the State Bank of Cross Plains website.

The transaction is expected to close by the end of 2022.

State Bank of Cross Plains and Monona Bank will continue to function independently until spring 2023, when the two banks are expected to fully merge, integrate and operate under a new name and brand.

S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Mar. 12, 2021, and Mar. 12, 2022, averaged 141.94% of book and 147.63% of tangible book and had a median of 18.19x last-12-months earnings, on an aggregate basis.

S.B.C.P. Bancorp will expand in Dane County, Wis., by eight branches to be ranked third with a 9.69% share of approximately $22.88 billion in total market deposits. It will enter Sauk County, Wis., with one branch to be ranked No. 13 with a 1.27% share of approximately $2.16 billion in total market deposits.

Hunton Andrews Kurth LLP was the legal adviser and The Bank Advisory Group was the financial adviser to S.B.C.P. Bancorp. Reinhart Boerner Van Deuren SC was the legal adviser and Piper Sandler & Co. was the financial adviser to Monona Bankshares.

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