Overview
Update: The deal announced in August 2019 has been completed.
August 14, 2019 - S&P Global Press Release
QCR Holdings Announces Strategic Divestiture
The Barack Ferrazzano Financial Institutions Group served as counsel to QCR Holdings, Inc. (Nasdaq: QCRH) in connection with the pending divestiture of its wholly-owned subsidiary, Rockford Bank and Trust Company, Illinois Bank & Trust, a wholly-owned subsidiary of Heartland Financial USA, Inc. ("Heartland") (Nasdaq: HTLF).
"Reaching this agreement with Heartland makes the most sense for Rockford Bank & Trust customers and the Rockford community, and is also a win-win for shareholders of Heartland and QCR Holdings, Inc.," stated Larry J. Helling, Chief Executive Officer of QCRH. "We have tremendous respect for the team at heartland and their community banking values. Their multi-charter structure and approach to client service is a natural fit for RB&T. In addition, we believe the combined banks will create the per-eminent bank in the Rockford community. Divesting of RB&T will allow QCRH to redeploy capital in our other existing markets and provide the best outcome for our shareholders."
Rockford Bank and Trust is a full-service community bank with $523 million in total assets, $423 million of gross loans outstanding, and $453 million of deposits as of June 30, 2019. Rockford Bank and Trust serves the Rockford market from two full-service banking centers. The transaction is subject to customary closing conditions and approval by federal and state bank regulators. It is expected to close in the fourth quarter of 2019, with a systems conversion planned for the first quarter of 2020.
Barack Ferrazzano's team was led by Abdul R. Mitha, Katherine Fritzi Getz, Neil R. Patel, and Robert M. Fleetwood. Compensation and employee benefits were handled by K.C. Klagos. Tax matters were handled by Michael J. Towne and Alice Lin.
About QCR Holdings, Inc.
QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company, which serves the Quad City, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Rockford communities through its wholly owned subsidiary banks.