MidWestOne Financial Group has signed an agreement to acquire ATBancorp, the holding company of American Trust & Savings Bank, for $170.3m.
Under terms of the agreement, the aggregate consideration will include transfer of stock at an exchange ratio of 117.5500x along with the cash amount of $34.8m.
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Approved by the boards of directors of both companies, the acquisition is expected to complete in Q1 2019. First, they need to secure regulatory and shareholder approvals.
Distribution changes
Once completed, the combined banking entity will have more than 60 branches across the states of Iowa, Minnesota, Wisconsin, Florida and Colorado with nearly $4.7bn in assets.
The MidWestOne board will also see the addition of two members, as a part of the deal.
MidWestOne president and CEO Charles Funk said: “We are very pleased and delighted that ATBancorp has agreed to join with MidWestOne, creating one of the premier banking franchises headquartered in Iowa.”
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By GlobalDataATBancorp’s chairman and president Nicholas Schrup III said: “MidWestOne shares our commitment to providing relationship banking together with responsive customer service.
“As part of the MidWestOne team, we will continue to provide the highly personalised experience our clients have come to expect while providing these clients with an expanded suite of products and services.
“This partnership will be a long-term benefit to our shareholders, clients and the communities we serve.”
As of 30 June 2018, ATBancorp had 12 branches in Iowa and five in Wisconsin with asset strength of $1.4bn.
It held more than $1.1bn in trust assets under administration. MidWestOne will acquired these assets in the current transaction.
