Iowa-based MidWestOne Financial Group, the parent company of MidWestOne Bank, has agreed to acquire ATBancorp, the bank holding company for American Trust & Savings Bank, in a cash-cum-stock deal worth around $170.3m.
Image: MidWestOne announces merger with ATBancorp. Photo: courtesy of rawpixel/Unsplash.
As per the merger agreement signed by the parties, the total consideration to be paid by MidWestOne to ATBancorp will be made up of stock consideration at an exchange ratio of 117.5500x along with fixed cash consideration of $34.8m.
Post merger, the combined company will control close to $4.7bn in assets apart from more than 60 branches located across the US states of Iowa, Minnesota, Wisconsin, Florida and Colorado.
MidWestOne president and CEO Charles Funk said: “ATBancorp has a rich heritage in one of Iowa’s finest cities. For over a century their company has evolved, extending their brand to the Dyersville area west of Dubuque, to Southwest Wisconsin and westward to Des Moines.
“We are appreciative of the excellence ATBancorp has shown in taking care of their customers and we envision a solid melding of our similar cultures.”
Currently, the 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.
On the other hand, MidWestOne, as of 30 June, 2018, reported assets of around $3.3bn. It operates 24 branches in Iowa, 13 branches in Minnesota, two branches in Florida, four branches in Wisconsin, and one branch in Colorado.
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.”
The transaction would need approvals from shareholders of ATBancorp and MidWestOne and regulatory agencies, in addition to meeting other customary closing conditions. After securing all that, the deal is anticipated to be completed during the first quarter of 2019.