Heartland Financial in Dubuque, Iowa, has agreed to buy Founders Bancorp in San Luis Obispo, Calif.
The $8 billion-asset company said in a press release Monday that it will pay $29.1 million, or $21.87 a share, in cash and stock for the $199 million-asset Founders. The deal is expected to close in the first quarter.
Heartland said it expects the deal to be accretive to its earnings per share in the first full year of combined operations.
Founders has four branches, a small-business lending center, $107 million in loans and $180 million in deposits.
"We see the San Luis Obispo County market area as an economically strong and vibrant region," Lynn Fuller, Heartland's chairman and chief executive, said in the release. Founders "is an excellent fit for our community banking business model."
D. A. Davidson and Stuart & Moore advised Founders. Panoramic Capital Advisors and Dorsey & Whitney advised Heartland.