WAUSAU – Peoples State Bank plans to acquire Sunset Bank & Savings of Waukesha, the financial institutions’ parent companies announced this week.

PSB Holdings, Inc., parent company of Peoples State Bank, and Waukesha Bankshares, Inc., parent company of Sunset Bank & Savings, jointly announced the execution of an agreement and plan to merge in a cash transaction on Dec. 16.

Located in Waukesha and founded in 1999, Sunset is a full-service privately owned community bank, with total assets as of Sept. 30, 2020, of $141 million. The combined company is expected to have over $1.24 billion in total assets with 10 full-service banking locations in central, northern and southeastern Wisconsin.

“We’re excited to grow our community banking efforts in southeastern Wisconsin, and feel this merger is a perfect complement to our newly opened bank location in West Allis,” said Scott Cattanach, Peoples State Bank president & CEO, in a news release.

Sunset Bank & Savings Chairman and CEO Bob Eastman will join the PSB Holdings, Inc. board of directors upon completion of the sale, expected sometime in the second quarter of 2021.

“Having a cabin in Wisconsin’s Northwoods, I’ve been aware of Peoples’ reputation as a great community bank for some time. Likewise, I’ve been impressed by their efforts to establish and grow in the Milwaukee area,” said Eastman in the release. “Peoples’ mission of being a community bank that is committed to the communities they serve … is well aligned with Sunset’s values, and the combined franchise will be well positioned for continued growth and success.”

Following completion of the merger, Sunset customers will see a conversion to the Peoples brand in June 2021. Completion of the merger is subject to customary closing conditions, including the receipt of required regulatory approvals.