Dubuque, Iowa-based Heartland Financial USA Inc. has agreed to acquire Community Banc-Corp of Sheboygan Inc., the parent company of Sheboygan-based Community Bank & Trust, for about $52 million or 155 percent of the tangible equity of Community Banc-Corp at closing.
Heartland also owns Madison-based Wisconsin Bank & Trust, which will be merged with Community Bank & Trust. Community Banc-Corp shares will be converted into Heartland common stock.
Community Bank & Trust has assets of about $525 million, loans of $410 million and deposits of $429 million as of Sept. 30. It has a main office and three branches in Sheboygan, as well as branches in Sheboygan Falls, Plymouth, Elkhart Lake, Chilton, Glendale and Greenfield.
“Our board views this merger as an excellent move for the customers of Community Bank & Trust,” said Anthony Jovanovich, chairman and chief executive officer of Community Banc-Corp. “As we considered our strategic direction, including the importance of identifying a potential quality merger partner, Wisconsin Bank & Trust, backed by the deep resources of Heartland, stood out as an excellent fit. We are very pleased to partner with a strong company that operates under a proven business model and is well-known as a forward-thinking organization.”
“We are excited to expand the Heartland community banking business model further into Wisconsin,” said Kevin Tenpas, president and CEO of Wisconsin Bank & Trust. “We are impressed with the quality of Community Bank & Trust’s markets and the opportunity to serve more of the attractive Sheboygan area. We are also pleased to add a talented team of experienced commercial and personal banking professionals with an excellent knowledge of the communities and the clients they serve.”
According to Heartland, the acquisition is expected to close in the first quarter of 2015 and opens the Milwaukee area to future expansion.
Following the transaction, Heartland will have $6.4 billion in assets and 87 branches in 10 states. Wisconsin Bank & Trust will have assets of more than $1.1 billion, and 19 branches in Wisconsin.
“We are excited about the prospect of expanding further in Wisconsin,” said Lynn Fuller, president and CEO of Heartland. “Community Bank & Trust is an excellent fit for our community banking business model, and its locations match our desire to ‘fill-in’ attractive areas in or close to our existing geographies. Community Bank & Trust is a profitable and financially sound bank that presents an excellent opportunity to build on its solid market share with business and retail customers.”