MidWestOne merging with ATBancorp

Two Iowa banking fixtures will merge early next year in a deal which creates a nearly $5 billion regional powerhouse.

Iowa City-based MidWestOne Financial Group, Inc.,will acquire Dubuque-based ATBancorp in a cash and stock deal worth $170.3 million.

The $1.4 billion ATBancorp has 12 branches in Iowa and five branches in southwest Wisconsin. Founded in 1911, American Trust & Savings Bank ranks second in total market deposits in Dubuque County. As of June 30, ATBancorp had approximately $1.1 billion in deposits, of which 84 percent were core deposits, and $1.1 billion in loans. It has over $1.1 billion in trust assets under administration which will be acquired by MidWestOne.

“We are very pleased and delighted that ATBancorp has agreed to join with MidWestOne, creating one of the premier banking franchises headquartered in Iowa,” said Charles Funk, pesident and CEO of MidWestOne. “ATBancorp has a rich heritage in one of Iowa’s finest cities. For over a century their company has evolved, extending their brand to the Dyersville area west of Dubuque, to southwest Wisconsin and westward to Des Moines.”

As of June 30, MidWestOne had assets of approximately $3.3 billion, operating 24 branches in Iowa, 13 branches in Minnesota, four branches in Wisconsin, two branches in Florida and one branch in Colorado.

Following the acquisition, expected to close in first quarter 2019, MidWestOne will add two additional board members to its board. There are no planned changes to MidWestOne‘s current executive management team. MidWestOne expects the transaction to be 15%+ accretive to its earnings per share in 2019 (excluding onetime transaction expenses) and 2020.

Most recently, MidWestOne beefed up its presence in its de novo Denver office, which it launched in 2017.

Piper Jaffray & Co. acted as financial advisor and Shapiro Bieging Barber Otteson LLP served as legal counsel to MidWestOne. Sandler O’Neill + Partners, L.P. acted as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to ATBancorp.