Heartland expanding in Colorado with deal to buy Citywide Banks
Heartland Financial in Dubuque, Iowa, has agreed to buy Citywide Banks of Colorado in Aurora.
The $8.2 billion-asset Heartland said in a press release Monday that it will pay $203 million in cash and stock for the $1.4 billion-asset Citywide. Heartland will also redeem $5 million in Citywide preferred stock. The deal is expected to close in the third quarter.
Citywide has 12 branches, $1 billion in loans and $1.2 billion in deposits around Denver and Boulder. Citywide will merge into Heartland’s Centennial Bank and Trust, though the surviving bank will use Citywide’s name.
Heartland said it expects the deal to be accretive to its earnings per share within the first full year of combined operations.
Kevin Quinn, Citywide’s president and CEO, will retain those titles after the banks are merged. Steve Ward, Centennial’s president, will remain with Heartland in an executive role after helping Quinn “blend the credit and underwriting cultures of the two organizations,” the release said.
Jim Basey, Centennial’s CEO, will become the bank’s vice chairman.
Lynn Fuller is Heartland’s chairman and CEO.
Sandler O’Neill and Shapiro Bieging Barber Otteson advised Citywide. Panoramic Capital Advisors, Raymond James & Associates and Dorsey & Whitney advised Heartland.