The $5.9 billion-asset
MidWestOne said in a press release Monday that it will pay $47.6 million in
cash for the $520 million-asset Iowa First. The deal is expected to close in
the first quarter.
“This is a natural extension
of the MidWestOne geographic footprint as we increase our market presence
in Muscatine and Jefferson counties,” Charles Funk, MidWestOne’s CEO, said in
the release.
Iowa First has two banks,
five branches, $453 million of deposits and $304 million of loans.
MidWestOne said it expects the deal to be about 14.4% accretive
to its 2022 earnings per share in 2022, excluding merger-related expenses, and
10.8% accretive the next year. It should take less than a year for the company
to earn back an estimated 0.7% dilution to its tangible book value.
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