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Subsequent Event
3 Months Ended
Mar. 31, 2024
Subsequent Events [Abstract]  
Subsequent Event

13. Subsequent Event

On April 29, 2024, the Company announced that it had entered into a definitive merger agreement with Heartland Financial USA, Inc. (HTLF), headquartered in Denver, CO, under which the Company will acquire HTLF in an all-stock transaction with a total market value of approximately $2.0 billion. Under the terms of the merger agreement, HTLF stockholders will receive a fixed exchange ratio of 0.55 shares of the Company’s common stock for each share of HTLF common stock.

The merger has been approved by the board of directors of each company and will close subject to the satisfaction of customary closing conditions, including the receipt of regulatory approval and approval by the shareholders of the Company and HTLF.

In a press release dated April 29, 2024, HTLF preliminarily reported total assets of approximately $19.1 billion, including loans of $11.6 billion, and deposits of $15.3 billion.

On April 29, 2024, the Company also announced that in connection with the execution of the merger agreement, it entered into a forward sale agreement with BofA Securities, Inc. or its affiliate to issue 2,800,000 shares of its common stock for approximate proceeds of $201.6 million. The underwriters were granted an option to purchase up to an additional 420,000 shares of the Company's common stock exercisable within 30 days of April 28, 2024. The underwriters exercised this option in full on April 30, 2024, upon which the Company entered into an additional forward sale agreement relating to the 420,000 shares of the Company's common stock. The forward purchase agreement is classified as an equity instrument under ASC 815-40, Contracts in Entity’s Own Equity.