An Arizona subsidiary of Heartland Financial USA in Iowa is buying branches from Johnson Financial Group, Racine, Wis.
Phoenix-based Arizona Bank & Trust is buying four branches from Johnson Bank, its entire footprint in the state. The deal, expected to close in fourth quarter, includes about $362 million in deposits and $186 million in loans as of March 31.
“We are growing our presence and adding additional scale in the Phoenix market,” said Lynn B. Fuller, executive operating chair of the Dubuque, Iowa-based Heartland. “We are pleased Johnson Bank’s Arizona team will be joining with the Arizona Bank & Trust team to expand and continue our success in this market.”
AB&T had $866 million in total assets and $754 million in deposits as of March 31. It operates six branches in Phoenix’s East Valley.
Racine’s $5.5 billion Johnson Bank also has 40 offices in Wisconsin.
“We look forward to the successful transition of our business to a local partner,” said Jim Popp, president and CEO of Johnson Financial Group. “Our Arizona team has been an integral part of the JFG family for more than 30 years. We are thankful to our Arizona associates for building a strong, vibrant, diversified business in one of the most dynamic growth markets in the country.”
After completing the acquisition of Johnson Bank’s four Arizona branches and the previously announced acquisition of AIM Bancshares, Levelland, Texas, Heartland will have total assets over $15 billion with 144 full-service banking locations operating in 12 states.
In connection with the transaction, Panoramic Capital Advisors, Inc. served as Heartland’s financial advisor and Dorsey & Whitney LLP served as Heartland’s legal counsel. Keefe, Bruyette & Woods served as JFG’s financial advisor and Reinhart Boerner Van Deuren s.c. served as JFG’s legal counsel.