MidWestOne Financial, the holding company of MidWestOne Bank, has completed its acquisition of Denver Bankshares (DNVB), which holds the Bank of Denver.
With the completion of the acquisition, the Bank of Denver has been merged with and into the MidWestOne Bank.
Under the terms of the deal, DNVB shareholders received $462.42 in cash, for each share of DNVB common stock held, which brings the total consideration to $32.6m.
Established in 1934, MidWestOne Bank provides financial services through 56 office locations in Iowa, Minnesota, Wisconsin, Florida, and Colorado, and its website.
With the addition of DNVB, MidWestOne would have total assets of around $6.7bn, total loans held for investment of $4.3bn, and total deposits of $5.6bn as of 31 December 2023.
Piper Sandler & Co. served as financial advisors, and Barack Ferrazzano Kirschbaum & Nagelberg as legal counsel to MidWestOne.
Olsen Palmer offered financial advisory services, and Spierer, Woodward, Corbalis & Goldberg served as legal counsel to DNVB.
In September last year, MidWestOne Financial executed a definitive agreement to reinvest the proceeds from the sale of its Florida operations through the acquisition of Denver Bankshares.
The all-cash transaction has been approved by the board of directors of both companies.
MidWestOne said it is strategically reinvesting in the Denver metropolitan area, which has been identified as one of its core markets, to advance its growth and scale.
The combined Florida and Denver transactions are expected to be 13.4% accretive to earnings per share in 2024 and 10.2% accretive to earnings per share in 2025.
MidWestOne’s Denver leadership will continue in their current positions, and Denver Bankshares CEO Lori Radcliffe will be appointed to the company’s market leadership team.
MidWestOne Financial CEO Charles Reeves then said: “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.
“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.”
