Heartland Financial USA has signed a definitive agreement to acquire Blue Valley Ban Corp (BVBC) through a 100% stock transaction valued at nearly $93.9m.
Once the acquisition is complete, BVBC subsidiary Bank of Blue Valley will merge with and into Heartland’s Kansas-based unit Morrill & Janes Bank and Trust Company.
Blue Valley Ban Corp acquisition details:
As per the terms of the agreement, BVBC common stock holders will receive 0.3271 shares of Heartland common stock against each BVBC common stock share.
The combined entity will operate under the Bank of Blue Valley brand and have 13 banking centres.
Founded in 1989, Bank of Blue Valley has nearly $725m in total assets as of 30 September 2018. Currently, it has five full-service banking centres in Kansas.
The merger of Morrill & Janes Bank and Bank of Blue Valley will form Heartland’s fourth largest bank subsidiary with approximately $1.3bn in assets.
Heartland will have total assets of nearly $12bn and 127 branches across 12 US states.
Heartland executive operating chairman Lynn Fuller said: “We strongly believe in the prospects of the greater Kansas City metropolitan area, and the acquisition of Bank of Blue Valley is a great opportunity to expand Heartland’s footprint in Johnson County, Kansas, an economically strong and vibrant region.
“Bank of Blue Valley complements our existing Kansas franchise, and the synergies resulting from our combined organisations will deliver broader client services, enhance Heartland shareholder value and position us well for continued growth in the Kansas City market.”
The Blue Valley Ban Corp acquisition is expected to close in the second quarter of this year. The closure is subject to receipt of approval from federal and state bank regulators approvals.
The systems conversion is scheduled to be carried out in the third quarter of 2019.