QCR Holdings in Moline, Ill., has agreed to buy Community State Bank in Ankeny, Iowa.
The $2.6 billion-asset QCR said in a press release Monday that it will pay $80 million in cash to buy the $595 million-asset bank from Van Diest Investment Co. The deal is expected to close in the fall.
Community State has 10 branches around Des Moines, Iowa, along with $421 million in loans and $482 million in deposits. QCR said it plans to run the bank under a separate charter.
"This transaction provides the opportunity for QCR … to expand our footprint in Iowa by partnering with a proven organization," Douglas Hultquist, QCR's president and chief executive, said in the release.
Van Diest Investment will continue to own First State Bank in Webster City, Iowa, according the Federal Reserve Board.
Raymond James and Barack Ferrazzano Kirschbaum & Nagelberg advised QCR. Belin McCormick advised Van Diest Investment.
QCR also said it sold about $30 million in common stock, at $24.75 a share, to help fund the acquisition. Shares were sold to institutional investors.