(By Balaseshan) Heartland Financial USA Inc. (NASDAQ:HTLF) said it has agreed to buy First Shares Inc. in Platteville, Wisconsin for about $11 million, which is estimated at 60% stock and 40% cash.
Under terms of the Agreement, the outstanding shares of First Shares, parent company of First National Bank of Platteville, will be converted into a combination of cash and shares of Heartland common stock, with the aggregate purchase price to be based upon the financial position of First Shares prior to closing.
Simultaneous with closing of the transaction, First National Bank will be merged into Heartland's Wisconsin Bank & Trust subsidiary. The transaction is expected to be a tax-free exchange with respect to the stock consideration received by the shareholders of First Shares.
The transaction is subject to approvals by First Shares shareholders and bank regulatory authorities, and is expected to close during the fourth quarter of 2012.
First National Bank has assets of about $130 million, loans of $88 million and deposits of $114 million as of June 30, 2012.
Incorporated in 1891, First National Bank is one of the first national banks organized in Wisconsin. In addition to its main office in Platteville, the bank operates branch offices in Lancaster and Hazel Green, Wisconsin.
HTLF is trading up 0.97% at $25.91 on Thursday. The stock has been trading between $12.21 and $27.00 for the past 52 weeks.