Glacier Bancorp in Kalispell, Mont., has agreed to buy Cañon National Bank in Cañon City, Colo., for $31.8 million.
The $8.6 billion-asset Glacier will pay $16.25 million in cash and the remainder in 554,229 shares of its common stock; the valuation of the shares is based on their July 30 closing price of $28.01. The companies expect the deal to close in the fourth quarter.
Glacier says the acquisition would be immediately accretive to earnings. Cañon had $21.4 million of consolidated tangible equity as of June 30.
The $253-million-asset Cañon has nine branches in central Colorado. Cañon's branches will be combined with Glacier's Bank of the San Juans.
D.A. Davidson was Glacier's financial adviser, and Miller Nash Graham & Dunn was the legal counsel. Keefe, Bruyette & Woods advised Cañon, and Stinson Leonard Street was the legal counsel.