QCR Holdings Inc. announced today that it will acquire Community National Bancorporation and Community National Bank, or CNB, in a deal worth $20.1 million.
Like QCR’s own banks, the Waterloo, Iowa-based CNB was established as a de novo, or startup, bank back in 1997. With banking locations in Iowa and Minnesota, CNB has $290 million in assets and $248 million in deposits as of Dec. 31. It employs nearly 100 people.
“Community National Bank and QCR Holdings share similar de novo roots. Both franchises were built based upon their communities’ need for a bank that could deliver local, customized, financial products and solutions,” Douglas Hultquist, QCR’s president and chief executive officer, said in a news release. “This transaction provides the opportunity for QCR Holdings to expand our footprint in Iowa and add another very strong commercial and industrial market to our company.”
He added that CNB will benefit from the merger by having access to additional operational resources, increased lending and leasing capabilities and expanded products and services, including wealth management and trust services.
According to Todd Gipple, QCR’s chief operating officer and chief financial officer, the transaction also will provide CNB with expanded support and capabilities.
“We believe this transaction is a great opportunity for Community National shareholders to be part of a strong, relationship-focused company. We are energized by the opportunity to partner with CNB to help create the dominant banking franchise in the communities they serve.”
Mike Peterson, chairman of the Community National and CNB boards, is expected to join the QCR Holdings board after the acquisition, which is expected to be completed in second quarter.
“This strategic merger will deliver significant value for our shareholders, allowing them to participate in the ownership of QCR Holdings, a strong relationship-based entity similar to CNB,” Peterson said.
QCR will acquire 100 percent of the stock of CNB, paying its shareholders 0.40 shares of QCR stock and $3 in cash for each share owned.
“The new combined entity also represents an important step in the growth of our franchise as we see benefits for our customers with access to a wider range of products and services,” Peterson said.
Josef Vich, CNB’s president and CEO, added that CNB employees “have worked particularly hard these past several years to regain a position of strength. Partnering with QCR Holdings will allow us to further broaden the reach of our mission to be the premier provider of banking and other financial services in our communities.”
QCR operates banks that serve the Quad-Cities, Cedar Rapids and Rockford, Ill.