QCR to bulk up in central Iowa
QCR Holdings in Moline, Ill., has agreed to buy Guaranty Bank and Trust in Cedar Rapids, Iowa.
The $3.4 billion-asset QCR said in a press release Thursday that it will pay $44.2 million in cash and stock for the $267 million-asset Guaranty. The deal, which is expected to close late in the third quarter, values Guaranty at 140% of its tangible book value.
QCR “continues to grow our franchise in markets that are important to us,” Douglas Hultquist, the company’s president and CEO, said in the release. “Partnering with a legacy financial institution such as Guaranty … is a good strategic fit.”
QCR said it expects the deal to be at least 4% accretive to its 2018 earnings per share. The deal will be immediately accretive to QCR’s tangible book value.
QCR plans to cut about 30% of Guaranty’s annual noninterest expenses. The company expects to incur about $4 million in merger-related expenses.
Piper Jaffray and Barack Ferrazzano Kirschbaum & Nagelberg advised QCR. Sheshunoff & Co. and Hunton & Williams advised Guaranty.