QCR Holdings (QCRH) in Moline, Ill., has agreed to buy Community National Bancorp in Waterloo, Iowa.
QCR will pay roughly $20.1 million in cash and stock for the $290 million-asset Community National. The consideration is 70% stock and 30% cash. The companies expect to complete the deal in the second quarter.
Community National also has $248 million in deposits, six branches in Iowa and two branches in Austin, Minn. Mike Peterson, the company's chairman, will join QCR's board after the deal closes, QCR said in a press release Thursday.
"This transaction provides the opportunity for QCR Holdings to expand our footprint in Iowa and add another very strong commercial and industrial … market to our company," Douglas Hultquist, QCR's president and chief executive, said in the press release.
With this deal, the $2 billion-asset QCR will expand in a state it knows well. QCR's $1.1 billion-asset Quad City Bank and Trust is based in Bettendorf, Iowa, and has four branches in the state. Its $587 million-asset Cedar Rapids Bank and Trust has two Iowa branches. QCR also controls Rockford Bank and Trust in Rockford, Ill.
Last month, Quad City Bank agreed to sell its credit card servicing operation and a credit card portfolio to Fifth Third Bancorp (FITB).
Raymond James and Barack Ferrazzano Kirschbaum & Nagelberg advised QCR on the deal. Davis Brown Law Firm advised Community National.