Muscatine, Iowa-based Central Bancshares Inc. has agreed to acquire Walcott, Iowa-based Walcott Trust and Savings Bank.
The deal will see the acquirer top $1 billion in total assets after closing, according to a news release. Terms of the transaction were not disclosed. The deal is expected to close by the end of 2019.
Walcott Trust and Savings Bank has total assets of approximately $130 million, Central Bancshares said. It serves a primary market area of Scott and northeast Muscatine counties in Iowa through two locations.
S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Aug. 26, 2018, and Aug. 26, 2019, averaged 149.70% of book and 151.37% of tangible book and had a median of 19.07x last-12-months earnings, on an aggregate basis.
With this deal, Central Bancshares will expand in Scott County, Iowa, by two branches to be ranked ninth with a 2.87% share of approximately $4.02 billion in total market deposits.
Central Bancshares is a privately held parent company of two subsidiary banks, Muscatine-based CBI Bank & Trust and Galesburg, Ill.-based Farmers & Mechanics Bank. On a combined basis, they serve approximately 32,000 households and businesses through 14 banking centers.
Cummings & Co. LLC served as financial adviser and Fredrikson & Byron PA served as legal counsel to Central Bancshares.
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