Illinois Bank & Trust, a wholly-owned subsidiary of Heartland Financial USA, has signed an agreement to acquire substantially all the assets and deposits and certain other liabilities of Rockford Bank and Trust Company (RB&T).
Under the terms of the agreement, IB&T will acquire the RB&T’s assets for $59.2m. The figure includes the purchase price premium and the aggregate net book value of the acquired assets.
A wholly-owned subsidiary of QCR Holdings, RB&T is a full-service community bank with $523m in assets.
As of 30 June 2019, IB&T had $853m in total assets operating eight full-service branches in Illinois.
Following the transaction, the lender will have around $1.3bn in assets and will operate ten banking centres.
Heartland executive operating chairman Lynn Fuller said: “We are growing our presence and adding additional scale in the Rockford market, where we have been quite successful.
“Rockford Bank & Trust is an excellent fit for our community banking business model, and we are pleased the Rockford Bank & Trust team will be joining with the Illinois Bank & Trust team to expand and continue our success in the market.”
The RB&T acquisition is subject to approval by federal and state bank regulators. It is expected to close in the fourth quarter of 2019, with systems conversion planned for the first quarter of next year.