MidWestOne Financial Group completes acquisition of Iowa First Bancshares

Iowa City, Iowa-based MidWestOne Financial Group Inc. completed the acquisition of Muscatine, Iowa-based Iowa First Bancshares Corp., the parent company of First National Bank of Muscatine and First National Bank in Fairfield, effective June 9.

Following the completion of the acquisition, First National Bank of Muscatine and First National Bank in Fairfield were merged with and into MidWestOne Bank.

The shareholders of Iowa First Bancshares received $42.14 in cash in exchange for each share of Iowa First Bancshares stock. The value of the total deal consideration was approximately $46.7 million, according to a news release.

Pursuant to the merger agreement, the total consideration paid to all Iowa First Bancshares shareholders was subject to a reduction if the company's closing tangible book value was less than $50.0 million. Because the closing tangible book value was less than $50.0 million as of the applicable date, the total consideration was reduced accordingly and both the total consideration and the per-share consideration that Iowa First Bancshares shareholders received reflect that reduction.

With the addition of Iowa First Bancshares, on an unaudited pro forma combined basis, MidWestOne would have total assets of approximately $6.5 billion, total loans held for investment of $3.5 billion and total deposits of $5.5 billion as of March 31, excluding acquisition accounting adjustments.

MidWestOne received financial advisory services from Piper Sandler & Co., and Otteson Shapiro LLP was its legal counsel. Iowa First Bancshares received financial advisory services from Hovde Group LLC, and Barack Ferrazzano Kirschbaum & Nagelberg LLP was its legal counsel.