Rochester-based Eastwood Bank has agreed to purchase two Austin branches of Waterloo, Iowa,-based, Community National Bank.
Eastwood Bank will acquire deposits of approximately $36.8 million and loans of approximately $30.8 million, according to QCR Holdings, the Moline, Ill.,-based holding company of Community National Bank. The transaction, subject to regulatory approval and customary closing conditions, is expected to be completed in the fourth quarter.
"Eastwood Bank was looking to expand its presence into Austin before QCR's acquisition of Community National Bank was announced. Community National Bank and Eastwood Bank share a similar business model and culture, making this agreement a mutually beneficial transaction," said Douglas M. Hultquist, president and chief executive officer of QCR Holdings Inc.
David J. Talen, president of Eastwood Financial Corp., said: "We are excited to introduce Eastwood Bank to the residents and businesses in the Austin area."
The Oak Ridge Financial Services Group acted as an adviser to Eastwood Bank.
QCR Holdings has several wholly owned subsidiary banks: Bettendorf, Iowa-based Quad City Bank & Trust Co, Cedar Rapids-based Cedar Rapids Bank & Trust Co., Rockford-based Rockford Bank Trust Co., and Community National Bank.
Eastwood Bank has more than $595 million in assets and employed 180 people at 11 locations in southeastern Minnesota.