Citywide Banks of Colorado, the parent of Citywide Banks, has agreed to merge with and into Heartland Financial, the parent of Centennial Bank and Trust, in a stock-cash deal worth $203m.

As of 31 December 2016, Citywide Banks manages nearly $1.4bn in total assets, $1bn in net loans outstanding and $1.2bn in deposits. The bank has 12 banking branches across metro Denver and Boulder, US.

Upon deal closing, Citywide Banks will merge with Heartland’s Colorado-based subsidiary Centennial Bank and Trust. The combined entity will operate under the Citywide Banks name and will be headed by Citywide Banks president and CEO Kevin Quinn.

The combined entity will serve clients from 29 bank branches and will manage $2.3bn in assets.

The transaction secured the nod of the boards of directors of both companies. It is expected to be completed in the third quarter of 2017, subject to shareholders and regulatory approvals, with a systems conversion planned for 2017 end.

Heartland chairman and CEO Lynn Fuller said: “Citywide brings a solid and experienced team, focused on providing excellent service to its customers and leadership for its communities, enhancing our current presence in the dynamic Denver market.

“The Schmitz family is well-known and respected in the Colorado banking community. We are excited they and the rest of the Citywide team will be joining our Centennial Bank and Trust team and the Heartland family of banks.”