- HBT Financial (NASDAQ:HBT) and NXT Bancorporation inked a definitive agreement wherein the former will acquire the latter thereby expanding HBT's footprint into Iowa.
- Under agreement terms, NXT's shareholders will have the right to receive 67.6783 shares of HBT's common stock and $400 in cash for each share of common stock of NXT, representing ~75% stock and 25% cash consideration.
- The estimated transaction value (~$42.8M) represents a 1.34 multiple of NXT’s tangible book value as of Mar. 31, 2021 and an 18.0 multiple of NXT’s earnings for the twelve months ended Mar. 31, 2021.
- NXT Bank, a community bank serving markets in Eastern Iowa with a relationship-based approach has $241M in assets, $198M in loans, and $184M in deposits as of Mar. 31, 2021.
- Transaction expected to close in Q4.
- Post merger, NXT Bank branches will become branches of Heartland Bank and the combined company would have had pro forma total assets of $4.1B, total loans of $2.5B, and total deposits of $3.5B as of Mar.31, 2021.
- On transaction closure, NXT shareholders are expected to hold ~6.2% of HBT's outstanding common stock.