MidWestOne Financial Group in Iowa City has agreed to buy Central Bancshares in Golden Valley, Minn.
The $1.8 billion-asset MidWestOne will pay roughly $134 million in cash and stock for the $1.2 billion-asset parent of Central Bank in a deal that is expected to close in the second quarter.
MidWestOne said in a press release and presentation Friday that it expects the transaction to be immediately accretive to 2015 earnings per share, excluding merger expenses, and at least 20% accretive to its 2016 earnings per share. The company said it expects to incur about $5 million in merger-related costs.
Central has $872 million in loans and $1.1 billion in deposits, along with 20 branches around Minneapolis and western Wisconsin and two branches in southwest Florida. Central has been an aggressive acquirer since the financial crisis, buying six failed banks and two open banks since 2009.
Kurt Weise, Central Bancshares'president, and Larry Albert, the bank's chief executive, will become executive vice presidents at MidWestOne. John Morrison, Central's chairman and sole shareholder, will have the same role at MidWestOne, and Central will gain five of MidWestOne's 13 board seats. Kevin Monson, MidWestOne's chairman, will become vice chairman.
MidWestOne was advised by Sandler O'Neill and Barack Ferrazzano Kirschbaum & Nagelberg. Central was advised by Fredrikson & Byron.