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HBT Financial (HBT) to Buy NXT Bancorporation, Expand in Iowa
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HBT Financial, Inc. (HBT - Free Report) recently inked a deal to acquire NXT Bank and its holding company NXT Bancorporation, Inc. for $42.8 million. The stock-cum-cash transaction will help HBT Financial expand in Iowa as NXT Bank serves markets in Eastern Iowa. It offers commercial, agricultural, real estate and consumer loans as well as a wide range of depository products.
The transaction, expected to close in the fourth quarter of 2021, has already been approved by the boards of both companies. It still awaits regulatory approvals, consent of NXT Bancorporation’s shareholder, and is subject to customary closing conditions.
Nathan Koch, president and CEO of NXT Bank, stated, “NXT Bank has an outstanding team of bankers, and we’re excited to join with Heartland Bank to bring a broader line of financial services to our commercial and retail customers and to have the additional resources and expertise to expand our business.”
Per Fred Drake, chairman and CEO of HBT Financial, “NXT is located in very nice communities in Eastern Iowa, and we are excited about serving the area. I think Nate and Roger Baker deserve a lot of credit for growing NXT and building a true community bank. The community bank model fits perfectly with Heartland Bank. It should be a great combination and build on each of our strengths.”
Transaction Details
Per the terms of the deal, shareholders of NXT Bancorporation will get 67.6783 shares of HBT Financial's common stock and $400 in cash for each share of NXT Bancorporation’s common stock. Thus, following the closure, NXT Bancorporation shareholders will own 6.2% of HBT Financial’s common stock.
As of Mar 31, 2021, NXT Bank had total assets of $241 million, deposits of $184 million and loans of $198 million. Following the transaction’s completion, NXT Bank will likely merge with and into Heartland Bank, and the combined entity is expected to have $4.1 billion in total assets, $2.5 billion in loans, and $3.5 billion in deposits.
After the deal’s conclusion, Nathan Koch will join Heartland Bank as the president of Iowa Market.
Conclusion
HBT Financial believes the acquisition deal will likely open up more growth opportunities. Further, it will support the financials of the company in the near term.
Over the past six months, shares of HBT Financial have rallied 19.4%, underperforming industry’s gain of 38%.
Image Source: Zacks Investment Research
Other Banks Making Similar Moves
M&T Bank Corporation (MTB - Free Report) and People’s United Financial Inc. announced merger deal in February 2021. The all-stock deal worth $7.6 billion is likely to close in the fourth quarter this year, subject to necessary approvals.
Huntington Bancshares Incorporated (HBAN - Free Report) and TCF Financial Corporation announced a merger deal last December. The transaction, likely to close in the ongoing quarter, is subject to regulatory consents
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
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Image: Bigstock
HBT Financial (HBT) to Buy NXT Bancorporation, Expand in Iowa
HBT Financial, Inc. (HBT - Free Report) recently inked a deal to acquire NXT Bank and its holding company NXT Bancorporation, Inc. for $42.8 million. The stock-cum-cash transaction will help HBT Financial expand in Iowa as NXT Bank serves markets in Eastern Iowa. It offers commercial, agricultural, real estate and consumer loans as well as a wide range of depository products.
The transaction, expected to close in the fourth quarter of 2021, has already been approved by the boards of both companies. It still awaits regulatory approvals, consent of NXT Bancorporation’s shareholder, and is subject to customary closing conditions.
Nathan Koch, president and CEO of NXT Bank, stated, “NXT Bank has an outstanding team of bankers, and we’re excited to join with Heartland Bank to bring a broader line of financial services to our commercial and retail customers and to have the additional resources and expertise to expand our business.”
Per Fred Drake, chairman and CEO of HBT Financial, “NXT is located in very nice communities in Eastern Iowa, and we are excited about serving the area. I think Nate and Roger Baker deserve a lot of credit for growing NXT and building a true community bank. The community bank model fits perfectly with Heartland Bank. It should be a great combination and build on each of our strengths.”
Transaction Details
Per the terms of the deal, shareholders of NXT Bancorporation will get 67.6783 shares of HBT Financial's common stock and $400 in cash for each share of NXT Bancorporation’s common stock. Thus, following the closure, NXT Bancorporation shareholders will own 6.2% of HBT Financial’s common stock.
As of Mar 31, 2021, NXT Bank had total assets of $241 million, deposits of $184 million and loans of $198 million. Following the transaction’s completion, NXT Bank will likely merge with and into Heartland Bank, and the combined entity is expected to have $4.1 billion in total assets, $2.5 billion in loans, and $3.5 billion in deposits.
After the deal’s conclusion, Nathan Koch will join Heartland Bank as the president of Iowa Market.
Conclusion
HBT Financial believes the acquisition deal will likely open up more growth opportunities. Further, it will support the financials of the company in the near term.
Over the past six months, shares of HBT Financial have rallied 19.4%, underperforming industry’s gain of 38%.
Other Banks Making Similar Moves
M&T Bank Corporation (MTB - Free Report) and People’s United Financial Inc. announced merger deal in February 2021. The all-stock deal worth $7.6 billion is likely to close in the fourth quarter this year, subject to necessary approvals.
Huntington Bancshares Incorporated (HBAN - Free Report) and TCF Financial Corporation announced a merger deal last December. The transaction, likely to close in the ongoing quarter, is subject to regulatory consents
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>