Heartland Financial completes Morrill & Janes Bank acquisition - Kansas City Business Journal
Dec 15, 2014
Heartland Financial USA Inc. completed the purchase of Merriam-based Morrill Bancshares Inc., the parent of Morrill & Janes Bank & Trust Co.
Heartland Financial paid $55.4 million, which included $16.6 million in cash and $38.8 million in 1.4 million shares of Heartland common stock. The price paid was about 1.25 times Morrill Bancshares' tangible equity. That was slightly higher than the national average deal price to tangible book value of 114 percent in the second quarter when the deal was announced , but lower than the 159 percent national average for deals the third quarter, according to data from SNL Financial . RELATED: Morrill & Janes agrees to merge into Heartland Financial
Heartland Financial of Dubuque, Iowa, is now a $5.7 billion multibank holding company with 78 banking locations nationwide. This is the company's first foray into the Missouri and Kansas markets. As of Sept. 30, Morrill Bancshares had $790 million in assets, $385 million in loans and $641 million in deposits. Morrill & Janes Bank becomes the tenth independent state chartered bank in the Heartland portfolio. The overall footprint now has 78 branches in 10 states throughout the Midwest. RELATED: Morrill & Janes key to Heartland Financial's growth plan
Former owner Kurt Saylor continues to serve as Morrill & Janes Bank president and CEO. Saylor has a seat on the Heartland board of directors. Saylor said he sold Morrill Bancshares to ensure continuity for the bank over the long haul. Heartland continues to allow the bank to operate independently, retaining its state charter, the oldest in Kansas. The bank was founded in 1871. Hovde Group LLC was the financial advisor to Morrill Bancshares. Keefe Bruyette and Woods Inc. was the investment advisor to Heartland. Want Kansas City Banking & Financial Services news in your inbox? Sign up for our free email newsletters. Industries