MidWestOne Financial Group has agreed to buy Iowa First Bancshares, a holding company with two banks in the Hawkeye State, for $47.6 million.
MidWestOne, in Iowa City, would grow to $6.2 billion of assets from $5.9 billion at Sept. 30 if regulators approve the deal. The company expects to complete it in the first quarter.
MidWestOne also has offices in Minnesota, Wisconsin, Florida and Colorado. But the agreement would allow it to expand into two growing counties in its home state with the addition of First National Bank of Muscatine and First National Bank in Fairfield.
Both of those banks “have been longtime pillars in their respective communities. Each has a strong deposit franchise and a long history of service in their markets,” MidWestOne CEO Charles Funk said in a press release announcing the deal Monday.
Buying Iowa First is expected to increase MidWestOne’s earnings per share by more than 14% next year, excluding acquisition-related costs, the company said.
Through its two banks, Iowa First operates five banking offices in the state. Its chairman and CEO, D. Scott Ingstad, said in the release that it found an “ideal partner in MidWestOne.”
“It marks the culmination of our search for a like-minded partner to strengthen and secure our presence in Muscatine and Fairfield, provide additional support and resources to our organization for continued growth, and offer our valued employees a path to long-term success,” he said.
