Eastwood Bank to Expand in Minn. with Branch Deal

Eastwood Bank in Minnesota has agreed to buy two branches from QCR Holdings (QCRH).

Eastwood plans to acquire the Austin, Minn., branches of QCR's Community National Bank along with $30.8 million in loans and $36.8 million in deposits, the companies announced Monday.

Financial terms of the agreement were not disclosed.

Eastwood has assets of $582 million and its headquarters in Rochester, Minn. It would have 13 locations upon completion of the deal, which the companies expect in the fourth quarter. Regulatory approval is required.

QCR, in Moline, Ill., has assets of $2.2 billion. It agreed to buy Community National, in Waterloo, Iowa, in February.

"Eastwood Bank was looking to expand its presence into Austin before QCR's acquisition of Community National Bank was announced," QCR Chief Executive Douglas Hultquist said in a news release. "Community National Bank and Eastwood Bank share a similar business model and culture, making this agreement a mutually beneficial transaction."

QCR has three subsidiaries in addition to Community National: the $1.2 billion-asset Quad City Bank and Trust in Bettendorf, Iowa; the $599 million-asset Cedar Rapids Bank and Trust in Cedar Rapids, Iowa; and the $323 million-asset Rockford Bank and Trust in Rockford, Ill.

Last month QCR sold two branches to Clear Lake Bank & Trust in Iowa. It sold Quad City's credit card business to Fifth Third Bancorp (FITB) in January.