First Western to buy Denver branches from Simmons First
First Western Financial in Denver has agreed to buy three branches in its home market from Simmons First Financial.
The $1.3 billion-asset First Western said in a press release Monday that it will also gain a loan production office, $58 million in deposits and $105 million in loans. The deal is expected to close in the third quarter.
The purchase price will be determined as the closing date nears.
First Western said it plans to close three of the acquired locations at a cost of $800,000.
The deal is expected to be 6% to 7% accretive to First Western’s 2020 earnings per share, excluding merger-related expenses.
“This branch purchase and assumption agreement is a very attractive way … to deepen our presence in our core Denver market in a manner that will be immediately accretive to earnings,” Scott C. Wylie, First Western’s CEO, said in the release.
“This transaction will enable us to add an attractive mix of commercial clients, as well as experienced banking talent that we believe will enhance our business development capabilities,” Wylie added.
Stephens advised Simmons. Hovde Group and Shapiro Bieging Barber Otteson advised First Western.