HBT Financial in Bloomington, Ill., has agreed to buy NXT Bancorp. in Cedar Rapids, Iowa.
The $3.9 billion-asset HBT said in a press release Monday that it will pay $42.8 million in cash and stock for the parent of the $241 million-asset NXT Bank. The deal, which is expected to close in the fourth quarter, priced NXT at 134% of its tangible book value.
NXT Bank has $198 million of loans and $184 million of deposits. It will provide HBT with its first branches in Iowa.
Nate Koch, NXT Bank’s president and CEO, will join become HBT’s Iowa market president.
“NXT is located in very nice communities in eastern Iowa, and we are excited about serving the area,” Fred Drake, HBT’s chairman and CEO, said in the release. “The community bank model fits perfectly with [HBT]. It should be a great combination and build on each of our strengths.”
The acquisition is the first for HBT since its initial public offering in October 2019.
Kirkland & Ellis and Piper Sandler advised HBT. Vedder Price and D.A. Davidson advised NXT.