Dubuque-based Heartland Financial USA Inc. will acquire Founders Bancorp of San Luis Obispo, Calif., in a cash and stock deal valued at $29.1 million, or $21.87 per share, under a merger agreement that has been approved by the boards of both bank holding companies, according to a release. The transaction would be made up of 70 percent stock and 30 percent cash. Founders’ stockholders will have the option of converting their shares to cash, shares of Heartland stock or a combination of the two. The deal is expected to close in the first quarter of 2017. At that time, Founders Community Bank will be merged into Heartland’s California-based subsidiary, Premier Valley Bank, with the Founders Community Bank branches continuing to operate under the Founders Community Bank name. A new Premier Valley Bank branch currently planned in San Luis Obispo will carry the Founders branding. Heartland has 108 banking locations serving 85 communities in Iowa, Arizona, California, Colorado, Illinois, Kansas, Minnesota, Missouri, Montana, New Mexico, Texas and Wisconsin.