Heartland Financial USA’s wholly-owned subsidiary Arizona Bank & Trust (AB&T) has agreed to acquire banking operations of Johnson Bank in the state of Arizona.
The financial details of the transaction have not been made public.
Johnson Bank’s banking operations in Arizona includes four full-service branches in Phoenix and Scottsdale.
AB&T will also assume the deposits and certain liabilities of Johnson Bank in the state. However, Johnson Insurance Services is not part of this deal.
Johnson Bank had nearly $362m in deposits and $186m in loans as of March 2020.
During deal closing, the companies will determine the actual amount of deposits AB&T will assume.
JFG President and CEO Jim Popp said: “Heartland’s culture is very similar to Johnson Financial Group’s culture in the way in which it engages its employees, serves its customers, and supports its communities.
“We look forward to the successful transition of our business to a local partner.”
AB&T, which operates six full-service branches in the state, has recorded $866m in total assets as of December last year.
Upon transaction completion, AB&T is expected to have nearly $1.2bn in assets and 10 full-service bank branches.
AB&T president and CEO William Callahan said: “AB&T and Johnson Bank share a common focus of providing excellent service to our customers and leadership for our communities.
“This transaction will enable us to add an attractive mix of commercial and personal clients, as well as experienced banking talent that we believe will enhance our business development capabilities.”
Subject to receipt of regulatory approvals and customary closing conditions, the transaction is expected to be completed in the fourth quarter of 2020.