Glacier Bancorp in Kalispell, Mont., will enter Nevada with an agreement to buy Heritage Bancorp in Reno, Nev.
The $12.1 billion-asset Glacier said in a press release Wednesday that it will pay $240.7 million for the $830 million-asset Heritage. The deal, which is expected to close in the third quarter, priced Heritage at 239% of its tangible book value.
Heritage has seven branches, $596 million in loans and $721 million in deposits.
Heritage will become Glacier’s 16th bank division.
“This is a rare opportunity to expand our presence into northern Nevada, a fast-growing market with a diverse economy that is continually attracting substantial investment from large technology and growth companies,” Randy Chesler, Glacier's president and CEO, said in the release.
“Reno’s convenient positioning near the San Francisco Bay Area has created a natural migration of residents seeking a lower-cost, business-friendly location,” Chesler added. "Heritage is consistent with our history of adding high-quality community banks to our proven banking model.”
Glacier said the deal will be immediately accretive to its earnings per share, excluding transaction-related expenses. It should take a little more than a year for Glacier to earn back any dilution to its tangible book value.
Glacier plans to cut 14.4% of Heritage’s annual noninterest expenses. Glacier expects to incur $12.6 million in merger-related expenses.
Glacier was advised by Keefe, Bruyette & Woods and Miller Nash Graham & Dunn. Heritage was advised by D.A. Davidson and Luse Gorman.
