DENVER — Denver-based Centennial Bank and Trust, a subsidiary of Heartland Financial USA Inc., and Aurora-based Citywide Banks, a wholly owned subsidiary of Citywide Banks of Colorado Inc., said Monday that their parent companies plan to merge Citywide into Heartland in a stock and cash transaction valued at approximately $203 million.
Citywide Banks will be merged into Centennial Bank and Trust, with the resulting institution operating under the Citywide B
anks brand name.
Citywide Banks is a 53-year-old commercial bank that operates 12 banking centers across metro Denver and Boulder. Centennial Bank and Trust has 17 locations across Colorado, including Boulder, Broomfield and Erie.
The agreement has been unanimously approved by the boards of directors of both companies. It still must be approved by Citywide and Heartland shareholders, and bank regulatory authorities.
The transaction is expected to close early in the third quarter of this year, with a systems conversion planned for fall 2017.
The combined Citywide Banks organization will be led by Kevin Quinn as president and chief executive. The remainder of the leadership team will be made up of Centennial Bank and Trust, and Citywide Banks executives. Current Centennial Bank and Trust president Steve Ward will work with Quinn to blend the credit and operating cultures of the two organizations. After the systems’ conversion, Ward will remain with Heartland in an executive role.
Kevin Ahern will remain chairman of the combined entity, and Jim Basey will serve as vice chairman of the board, supporting Quinn in his expanded role. Marty and Jeff Schmitz will remain on the board of the combined entity.
Citywide common shareholders will receive 3.300 shares of Heartland common stock and $57 in cash for each share of Citywide common stock, subject to certain adjustments
Citywide Banks has approximately $1.4 billion in total assets, $1 billion in net loans outstanding and $1.2 billion in deposits as of Dec. 31. Centennial Bank and Trust has assets of $900 million. Combined, they will create Heartland’s largest bank subsidiary with assets of $2.3 billion.
Following the merger, Heartland will hold assets of $9.8 billion, loans of $6.6 billion and deposits of $8.3 billion, with 124 full-service banking locations operating across 12 states.