QCR Holdings Inc. is acquiring Waterloo-based Community National Bancorporation andCommunity National Bank.|
CNB has eight banking sites, and had about $290 million inassets and $248 million in deposits as of Dec. 31.
"This transaction provides the opportunity for QCR Holdings (Nasdaq:QCRH) to expand our footprint in Iowa and add another very strong commercialand industrial (C & I) market to our company," said Douglas M. Hultquist, president and chief executive officer of QCR Holdings.
"With this strategicmerger, we look to enhance the future of CNB by providing additionaloperational resources, expanded products and services, increasedlending and leasing capabilities, along with expanded wealth managementand trust services," Mr. Hultquist said.
"We will be combining resources and leveragingthe significant operational resources we have created at QCR Holdingsto provide the CNB team with expanded support and capabilities as theycontinue to deliver exceptional service to customers and the community," Todd A. Gipple, QCR Holdings chief operating officer and chief financial officer, said.
"The new combined entity alsorepresents an important step in the growth of our franchise as we seebenefits for our customers with access to a wider range of products andservices," said Michael L. Peterson, chairman of the Community National and CNB boards, who is expected to join the QCR Holdings Board after the acquisition is complete.
The agreement calls forQCR Holdings to acquire 100 percent of CommunityNational's outstanding common stock for aggregate consideration of 70 percent QCR Holdings common stock and 30 percent cash.
Subject to certain adjustments,each share of Community National common stock will receive 0.40 sharesof QCR Holdings common stock and cash consideration of $3. Based onthe closing price of QCR Holdings common stock on Feb. 13, the implied valuation of the acquisition is about $20.1million.
Moline-based QCR Holdings Inc., is a multi-bank holding company serving the Quad-Cities, Cedar Rapids and Rockford areas through its wholly owned subsidiary banks.
Bettendorf-based Quad City Bank & Trust Company, started operations in 1994. Cedar Rapids-based Cedar Rapids Bank &Trust Company, started in 2001 and Rockford-based Rockford Bank & Trust Company, started in 2005.
All providefull-service commercial and consumer banking and trust and assetmanagement services. Quad City Bank & Trust Company also does commercial leasing through its wholly owned subsidiary, m2 Lease Funds LLC, based in Milwaukee, Wis.
Community National Bancorporation is a single-bank financial holdingcompany that owns 100 percent of Community National Bank in Waterloo, withbanking locations in Waterloo, Cedar Falls and Mason City, Iowa, andAustin, Minn. Community National Bank started operations in1997.
The acquisition is subject to regulatory approval by banking regulators, approval by Community National shareholders, and certain closing conditions. It's expected to close in the second quarter.
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