MidWestOne to acquire Iowa First

Iowa’s MidWestOne Financial Group, Inc., is buying Iowa First Bancshares Corp., Muscatine, for $47.6 million. After the deal closes in the first quarter, the combined company will have approximately $6.2 billion in total assets with over 60 banking offices throughout Iowa, Minnesota, Wisconsin, Florida and Colorado.

IOFB operates five banking offices in Iowa through its two banks, First National Bank of Muscatine and First National Bank in Fairfield. Founded in 1870, First National Bank of Muscatine has $362 million in assets, $316 million in deposits and $204 million in total loans. Founded in 1865, First National Bank in Fairfield has $158 million in assets,  $137 million in deposits and $100 million in total loans.

“This is a natural extension of the MidWestOne geographic footprint as we increase our market presence in Muscatine and Jefferson Counties,” said MidWestOne CEO Charles Funk. “Both First National Banks — Muscatine and Fairfield — have been long-time pillars in their respective communities. Each has a strong deposit franchise and a long history of service in their markets. We look forward to welcoming our new customers and employees to MidWestOne.”

The $5.9 billion MidWestOne has thirty-four banking offices in Iowa, twelve banking offices in Minnesota, seven banking offices in Wisconsin, two banking offices in Florida, and one banking office in Colorado.

Iowa City-based MidWestOne expects the transaction to be approximately 14.4 percent accretive to its earnings per share in 2022 (excluding one-time transaction expenses) and 10.8 percent accretive in 2023. The transaction is expected to be approximately 0.70 percent dilutive to tangible book value per share at closing, which is expected to be earned back in less than one year.

“This is a significant milestone for our company,” said D. Scott Ingstad, chair, president and CEO of IOFB. “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. We’ve found that ideal partner in MidWestOne.”

Piper Sandler & Co., acted as financial advisor and Otteson Shapiro LLP served as legal counsel to MidWestOne. Hovde Group, LLC acted as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to IOFB.