Johnson Financial Group to sell Arizona branches to Heartland Financial USA

Last updated on June 12th, 2020 at 01:18 pm

Arizona Bank & Trust, a subsidiary of Dubuque, Iowa-based Heartland Financial USA, Inc., agreed to purchase multiple banking centers from Johnson Bank, the financial institution recently announced.

Racine-based Johnson Bank, a subsidiary of Johnson Financial Group, Inc., had $5.52 billion in assets and $4.28 billion in deposits as of March 31, 2020. Johnson Bank operates more than 40 banking centers in Wisconsin and four full-service banking centers in Phoenix and Scottsdale, Arizona.

Under the terms of the agreement, AB&T will acquire four of Johnson Bank’s Arizona banking centers, which had deposits of approximately $362 million and loans of approximately $186 million as of March 31, 2020.

AB&T operates six full-service banking centers in the East Valley of the Phoenix market. The bank had $866 million in total assets and $754 million in deposits as of March 31, 2020.

When the transaction is complete, AB&T, a subsidiary of Phoenix-based Heartland, will become Heartland’s eighth bank subsidiary with more than a billion in assets. Following the transaction, AB&T will have $1.2 billion in assets and 10 banking centers.

AB&T will continue to operate under the Arizona Bank & Trust brand.

“We are growing our presence and adding additional scale in the Phoenix market,” said Lynn B. Fuller, executive operating chairman of Heartland. “We are pleased Johnson Bank’s Arizona team will be joining with the Arizona Bank & Trust team to expand and continue our success in this market.”

Heartland will have total assets of $15 billion with 143 full-service banking locations operating in 12 states upon completion of Johnson Bank’s Arizona branches, and the previously announced acquisition of AIM Bancshares.

Following the acquisition of Johnson Bank’s four Arizona branches and the previously announced acquisition of AIM Bancshares, Inc. in Levelland, Texas, Heartland will have total assets of over $15 billion with 143 full-service banking locations operating in 12 states.

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Brandon Anderegg
Brandon covers startups, technology, banking and finance. He previously worked as a general assignment and court reporter for The Freeman in Waukesha. Brandon graduated from UW-Milwaukee’s journalism, advertising and media studies program with an emphasis in journalism. He enjoys live music, playing guitar and loves to hacky sack.