Mergers & Acquisitions

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Deal Overview

Buyer:
Heartland Financial USA, Inc.
Actual Acquirer:
Heartland Financial USA, Inc.
Target:
First Bank Lubbock Bancshares, Inc.
Deal Type:
Bank & Thrift Company
Agreement Date:
12/12/2017
Announcement Date:
12/12/2017
Announced Deal Value ($ M):
185.56
Status:
Completed
Completion Date:
5/18/2018
Announced Deal Value Per Share ($ )
NA

Consideration Breakout
Cash ($M) 5.4
Common Stock ($M) 185.3
Common Stock Issued 3,350,664

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 235.5 228.2
Price / Tangible Book (%) 239.6 231.6
Price / Earnings (x) 15.1 14.9
Price / Deposits (%) 22.51 23.56
Price / Assets (%) 19.97 21.08
Tangible Book Premium/ Deposits (%) 17.92 17.82
Deal Terms
Description of Consideration

Heartland Financial USA Inc. paid $5.015 per share in cash and exchanged 3.0934 shares of its common stock for each outstanding share of First Bank Lubbock Bancshares Inc. Heartland Financial USA Inc. also assumed First Bank Lubbock Bancshares Inc.’s Trust preferred securities and indebtedness was repaid. Target financials are for First Bank & Trust.

Accounting Method Acquisition
In-State Transaction? No
Merger of Equals? No
Geographic Expansion? Market Expansion
Goodwill Generated ($ 000) 121,363
Estimated Cost Savings (%) 25.00
Estimated Cost Savings ($ 000) 9,300
Est. Restructuring Charges ($ 000) NA
Maximum Termination Fee ($ 000) 7,400
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 3.093400
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Lockup Agreement No
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Core Deposit Intangibles ($ 000) 13,908
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes Panoramic Capital Advisors Inc
Seller Yes Stephens Inc.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Dorsey & Whitney LLP
Seller Yes Fenimore Kay Harrison & Ford