Business
QCR Holdings, Inc. Completes Sale of the Operations of Rockford Bank & Trust
MOLINE, Ill, Dec. 02, 2019 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH, the “Company”) today announced that on November 30, 2019, the Company
About this update from Qcr Holdings, Inc.
[{"type":"text","content":"MOLINE, Ill, Dec. 02, 2019 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH, the “Company”) today announced that on November 30, 2019, the Company completed the sale of substantially all of the assets and transfer of substantially all of the deposits and certain other liabilities of the Company’s wholly-owned subsidiary, Rockford Bank and Trust Company (“RB&T”) to Illinois Bank & Trust (“IB&T”), a wholly-owned subsidiary of Dubuque, IA-based Heartland Financial USA, Inc. (NASDAQ: HTLF). The purchase and assumption transaction, announced in August 2019, is valued at approximately $59.1 million. The $59.1 million represents a cash payment of approximately $46.9 million from IB&T, including the purchase price premium of $12.5 million, and the separate liquidation of net assets retained by QCRH of $12.2 million. \n “We are confident the combination of RB&T and IB&T creates a premier community bank that will continue to serve the needs of the Rockford community and Winnebago County,” said Larry J. Helling, Chief Executive Officer of QCRH. “Divesting of RB&T enables QCRH to redeploy capital in our other more profitable markets to help drive continued organic and acquisitive growth and provides the best outcome for our shareholders.” Todd A. Gipple, President and Chief Financial Officer of the Company stated, “While RB&T represented approximately 10% of our Company’s assets, we were unable to achieve the necessary scale in the Rockford market. The $46.9 million cash payment represents a purchase price premium of 34.5% of adjusted tangible pro-forma equity, or $12.5 million, pre-tax. As a result of the sale, we anticipate significant improvement in our profitability metrics.” About Us QCRH, headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, Springfield First Community Bank, based in Springfiel...