The Bank Slate


MidWestOne to buy Iowa First Bancshares for $48M

MidWestOne Financial Group in Iowa City has agreed to buy Iowa First Bancshares in Muscatine. 

The $5.9 billion-asset MidWestOne said in a press release Monday that it will pay $47.6 million in cash for the $520 million-asset Iowa First. The deal is expected to close in the first quarter. 

“This is a natural extension of the MidWestOne geographic footprint as we increase our market presence in Muscatine and Jefferson counties,” Charles Funk, MidWestOne’s CEO, said in the release. 

Iowa First has two banks, five branches, $453 million of deposits and $304 million of loans. 

MidWestOne said it expects the deal to be about 14.4% accretive to its 2022 earnings per share in 2022, excluding merger-related expenses, and 10.8% accretive the next year. It should take less than a year for the company to earn back an estimated 0.7% dilution to its tangible book value.

Piper Sandler and Otteson Shapiro advised MidWestOne. Hovde Group and Barack Ferrazzano Kirschbaum & Nagelberg advised Iowa First.

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