Heartland Financial USA (HTLF) in Dubuque, Iowa, has agreed to buy Morrill Bancshares in Merriam, Kan.
The $5 billion-asset Heartland will pay $61.5 million in cash and stock for Morrill. The parent of Morrill & Janes Bank and Trust has $751 million in assets and 11 branches. Heartland would have 79 branches in 10 states once the acquisition is completed.
"We are excited to expand the Heartland independent community banking business model into the Kansas City and northeast Kansas markets," Lynn Fuller, Heartland's chief executive, said in a press release. "Morrill & Janes Bank and Trust Company has a strong commitment to community banking."
Morrill & Janes is expected to keep its name and management team. The deal is expected to close by Nov. 1.
"This is a great opportunity for our customers, who will enjoy a broader selection of banking products and will continue to deal directly with our current staff," Kurt Saylor, Morrill's chief executive, said in the release.
Keefe Bruyette & Woods advised Heartland. Morrill was advised by Hovde Group.