OREANDA-NEWS. June 09, 2017. QCR Holdings, Inc. (NASDAQ:QCRH) today announced the signing of a definitive agreement to acquire Guaranty Bank and Trust Company (“Guaranty Bank”) from Guaranty Bankshares, Ltd. (“Guaranty”).  Established as a de novo bank in 1934, Guaranty Bank is headquartered in Cedar Rapids, Iowa.  The acquisition and subsequent merger of Guaranty Bank into Cedar Rapids Bank & Trust Company (“CRBT”) will enhance the footprint and deposit base of CRBT, a wholly owned subsidiary of QCRH.

Guaranty Bank has five banking locations and approximately $267 million in assets and approximately $213 million in deposits as of March 31, 2017.  The synergies between the Guaranty Bank and QCR Holdings approach to customer service and community involvement are key components in this strategic acquisition. 

“QCRH continues to grow our franchise in markets that are important to us,” commented Douglas M. Hultquist, President and Chief Executive Officer, “and partnering with a legacy financial institution such as Guaranty Bank is a good strategic fit.  The mission, vision and values of both organizations focus on recruiting the best people, delivering exceptional, local client service and building the communities they serve. We are extremely honored to welcome the clients and employees of Guaranty Bank to the QCR Holdings family.”

Todd A. Gipple, Chief Operating Officer and Chief Financial Officer of QCR Holdings remarked, “We believe this transaction is a great opportunity for Guaranty shareholders to be part of a strong, relationship-focused company.  We are pleased to have the opportunity to partner with Guaranty Bank to help create the dominant community banking franchise in the Cedar Rapids area.  As one of our key strategies to drive shareholder value, QCR Holdings seeks to participate as an acquirer to further boost ROAA and increase earnings per share.  We believe acquiring Guaranty Bank will add to the value and growth of our Company.”

Robert D. Becker, Chairman and President of Guaranty Bankshares said, “Guaranty Bank began serving the Cedar Rapids community over 83 years ago.  This acquisition provides broader services to our customers while providing greater opportunities for our shareholders.”

“We are excited about joining forces with Cedar Rapids Bank & Trust. Partnering with CRBT will allow us to further broaden the reach of our mission which is to consistently exceed expectations by providing solutions which help our customers, our stakeholders and our communities prosper,” added Christopher J. Lindell, President and Chief Executive Officer, Guaranty Bank. “Customer service will remain our primary focus during and after this merger.  For the near future, CRBT and Guaranty Bank do not anticipate any immediate changes to our organizations, so customers can continue doing business as usual.”

Piper Jaffray & Co. served as financial advisor to QCR Holdings and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel.  Sheshunoff & Co. Investment Banking, L.P. served as financial advisor to Guaranty and Hunton & Williams LLP served as legal counsel.

Terms of the Transaction

In the acquisition, QCR Holdings will acquire 100% of Guaranty Bank’s outstanding common stock and certain other assets of Guaranty for aggregate consideration of 79% QCR Holdings common stock and 21% cash.  The projected deal value at closing of the transaction is approximately $44.2 million.  The transaction is subject to regulatory approval by bank regulators, approval by Guaranty shareholders and certain closing conditions.  The transaction is expected to close late in the third quarter or early fourth quarter of 2017.

About Us

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company, which serves the Quad City, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Rockford communities through its wholly owned subsidiary banks.  Quad City Bank & Trust Company, which is based in Bettendorf, Iowa, and commenced operations in 1994, Cedar Rapids Bank & Trust Company, which is based in Cedar Rapids, Iowa, and commenced operations in 2001, Community State Bank, which is based in Ankeny, Iowa and was acquired by the Company in 2016, and Rockford Bank & Trust Company, which is based in Rockford, Illinois, and commenced operations in 2005, provide full-service commercial and consumer banking and trust and wealth management services.  Quad City Bank & Trust Company also provides correspondent banking services.  In addition, Quad City Bank & Trust Company engages in commercial leasing through its wholly owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee, Wisconsin.  Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company.