MidWestOne Financial Group has announced a merger agreement to reinvest the proceeds from their Florida operations to a new acquisition, a move that was announced in September.
The board of directors approved a cash-only deal to acquire Denver Bankshares, Inc. – parent company of The Bank of Denver – using the funds from their Florida sale, for a total of $32 million.
“By reinvesting the proceeds from the sale of our Florida operations into the acquisition of Denver Bankshares, we are continuing to build the necessary critical mass in our Denver market, a large and core metropolitan market,” said Charles (“Chip”) Reeves, CEO of the company.
“This acquisition accelerates our growth in the region by three to four years. This additional scale in Denver will enable us to continue to recruit bankers and build upon our already strong momentum in this commercially and demographically attractive market.”
The Bank of Denver has $271 million in assets, $198 million in loans and $242 million in deposits. The combined Florida and Denver transactions are estimated to increase earnings per share by 13% in 2024, and 10% in 2025.
The Bank of Denver is the sixth largest community bank in the Denver market, with an appealing deposit base of 32.8% in non-interest bearing deposits, along with a deposit cost of 0.98%.
MidWestOne’s leadership in Denver will continue without changes, and Lori Radcliffe, the CEO of Denver Bankshares, will join the company’s market leadership team. The transaction is expected to close in the first quarter of 2024.
A presentation with additional information can be accessed by visiting the company’s investor relations website at www.midwestonefinancial.com