Glacier Bancorp in Kalispell, Mont., has agreed to buy Columbine Capital in Buena Vista, Colo.
The $9.6 billion-asset Glacier said in a press release Tuesday that it would pay $73.9 million in cash and stock for the parent of the $469 million-asset Collegiate Peaks Bank. The deal, which is expected to close in the first quarter of 2018, prices Columbine at 192% of its tangible book value.
It would be Glacier’s eighth bank acquisition in the last five years.
Collegiate Peaks has five branches, $331 million in loans and $401 million in deposits.
“We have long admired the community banking franchise that the Collegiate Peaks team has built over many years,” Randy Chesler, Glacier’s president and CEO, said in the release. “We strongly believe in the prospects of the Colorado market and Collegiate Peaks is a great partner to further expand our presence.”
The acquisition is expected to be 1.4% accretive to Glacier’s 2018 earnings. It should take two and a half years to earn the deal’s dilution to Glacier’s tangible book value.
Glacier said it expects to incur $3.9 million in merger-related costs. It would cut 14.6% of Columbine’s annual noninterest expenses, or roughly $1.8 million.
Glacier was advised by Keefe, Bruyette & Woods and Miller Nash Graham & Dunn. Columbine was advised by D.A. Davidson and Fairfield & Woods.