Heartland Financial USA has completed the acquisition of Heritage Bank, National Association, a Phoenix-based commercial bank, in an all-cash deal valued at nearly $15.6m.
The purchase price represents a premium of nearly 1.24 times total equity and a premium on total deposits of 3.56%, according to the purchaser.
The acquirer anticipates that the transaction will be accretive to earnings in 2013.
Pending integration of the Heritage charter with Heartland’s Arizona Bank & Trust subsidiary and completion of the systems conversion, Heartland will manage the acquired entity as a separate charter until late in the first quarter of 2013.
Following completion of transaction, Heartland banking locations in the Phoenix, Arizona market will expand from seven to nine.
Heritage Bank, which was operating as a subsidiary of Ameri-National Corporation of Overland Park, Kansas, had assets of nearly $107m, loans of $73m and deposits of $84m, as of 30 September 2012.
Stifel Nicolaus Weisel and the Hovde Group served as the financial advisor of Heartland and Ameri-National Corporation, respectively.
Heartland Financial USA is a $4.6bn company, which caters commercial and retail banking, residential mortgage, wealth management, investment services, insurance and consumer finance services.