(By Balaseshan) Heartland Financial USA Inc. (NASDAQ: HTLF) said it has completed the acquisition of Phoenix-based commercial bank Heritage Bank N.A. for about $15.6 million in cash from Ameri-National Corp. of Overland Park, Kansas.
The purchase price represents a premium of about 1.24 times total equity and a premium on total deposits of 3.56%. Heartland expects the transaction to be accretive to earnings in 2013.
As of September 30, 2012,Heritage had assets of approximately $107 million, loans of $73 million and deposits of $84 million. The acquisition expands the number of Heartland banking locations in the Phoenix, Arizona market from seven to nine.
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Heartland will operate Heritage Bank as a separate charter until late in the first quarter of 2013 when it expects to combine the Heritage charter with Heartland's Arizona Bank & Trust subsidiary and complete the systems conversion.
Stifel Nicolaus Weisel acted as financial advisor to Heartland and The Hovde Group acted as financial advisor to Ameri-National Corp.
Heartland Financial is a $4.6 billion diversified financial services company providing commercial and retail banking, residential mortgage, wealth management, investment services, insurance and consumer finance services.
Heartland currently has 68 banking locations in 46 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado and Minnesota and mortgage loan production offices in California, Nevada, Wyoming, Idaho and North Dakota.
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HTLF is trading up 0.12% at $26.17 on Monday. The stock has been trading between $14.53 and $29.01 for the past 52 weeks.