Iowa-based MidWestOne Financial Group, the parent company of MidWestOne Bank, has closed the acquisition of ATBancorp, the bank holding company for American Trust & Savings Bank, for about $152.9m.
Image: MidWestOne Financial has acquired ATBancorp. Photo: Image by rawpixel from Pixabay.
The merger deal was signed by the parties in 2018 to create publicly-traded financial services company.
The value of the deal is based on the volume weighted-average of the closing sales prices of MidWestOne’s stock for the 20 consecutive trading days immediately preceding 30 April 2019. It includes $118.1m of MidWestOne stock and $34.8m of cash issued to ATBancorp shareholders.
American Trust & Savings Bank and American Bank & Trust-Wisconsin have now been merged with and into MidWestOne’s wholly owned subsidiary, MidWestOne Bank.
As per the terms of the merger agreement, ATBancorp shareholders received 117.55 shares of MidWestOne stock and $992.51 in cash in exchange for each share of ATBancorp stock.
MidWestOne president and CEO Charles Funk said: “It is exciting to welcome our new teammates from ATBancorp into our company. We share the same values and goals in terms of service to our customers and communities and this begins an exciting new chapter for MidWestOne.”
On a pro forma combined basis, the combined company has close to $4.7bn in assets apart from more than 60 branches located across the US states of Iowa, Minnesota, Wisconsin, Florida and Colorado.
At the time of deal signing, ATBancorp 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 personalized 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.”
On the transaction, Piper Jaffray served as financial advisor and Shapiro Bieging Barber Otteson as legal counsel to MidWestOne, while Sandler O’Neill and Partners served as financial advisor while Barack Ferrazzano Kirschbaum & Nagelberg was the legal counsel to ATBancorp.
Iowa-based ATBancorp manages 12 branches in Iowa and five branches in Southwest Wisconsin. As of 30 June 2018, ATBancorp had around $1.4bn in total assets with $1.1bn in deposits.
As of 30 June 2018, MidWestOne had around $3.3bn in total assets, operating 24 branches in Iowa, 13 branches in Minnesota, four branches in Wisconsin, two branches in Florida, and one branch in Colorado.