Heartland in Iowa to buy Minneapolis-area bank

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Heartland Financial USA in Dubuque, Iowa, has agreed to buy Signature Bank in Minnetonka, Minn.

The $9.8 billion-asset Heartland said in a press release late Monday that it will pay $53.4 million in cash and stock for the $390 million-asset Signature. The deal is expected to close in the first quarter.

Signature will be merged into Heartland’s Minnesota Bank & Trust. A systems conversion is planned for the second quarter.

Signature, founded in 2003 by Ken Brooks and Leif Syverson, has $326 million in loans and $339 million in deposits.

Brooks, Signature’s chairman and chief executive, will become president and CEO of Minnesota Bank & Trust. Steven Thul will remain the bank’s chairman.

Heartland said it expects the deal to be accretive to its earnings per share within the first full year of combined operations.

Panoramic Capital Advisors and Dorsey & Whitney advised Heartland. Sheshunoff & Co. and Winthrop & Weinstine advised Signature.

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