The merger agreement, which received First Scottsdale Bank shareholder approval and all regulatory approvals, was completed as an all-cash transaction valued at approximately $17.7 million and represented 106% of tangible book value. Heartland expects the transaction to be accretive to its earnings per share within the first full year of combined operations.
As of June 30, 2015, First Scottsdale Bank had assets of approximately $96 million, including $63 million in loans outstanding and $79 million in deposits. Arizona Bank & Trust had assets of approximately $511 million, including $384 million in loans and $406 million in deposits. Following the consolidation of two First Scottsdale Bank branches into nearby Arizona Bank & Trust banking centers, the merger expands the number of Arizona Bank & Trust locations from seven to eight and adds Gold Canyon to the bank’s service area.
Boenning and Scattergood, Inc. served as financial advisor to First Scottsdale Bank and Sacks Tierney P.A. served as First Scottsdale Bank’s legal advisor. Panoramic Capital Advisors Inc. served as financial advisor to Heartland, and Dorsey & Whitney LLP served as Heartland’s legal advisor.
