Glacier bulking up in Utah with latest bank acquisition
Glacier Bancorp in Kalispell, Mont., has agreed to buy FNB Bancorp in Layton, Utah.
The $11.9 billion-asset Glacier said in a press release Wednesday that it will pay $85 million in stock for the $326 million-asset parent of First National Bank of Layton. The deal, which is expected to close in the second quarter, priced FNB at 216.4% of its tangible book value.
FNB, which is Glacier’s 10th acquisition in the past six years, has six branches, $243 million in loans and $278 million in deposits.
Glacier said it will merge its four existing banks in Utah into First National to create a $500 million-asset bank.
"We are excited for this opportunity to partner with FNB and expand Glacier’s presence in Utah,” Randy Chesler, Glacier's president and CEO, said in the release. “The addition of FNB, along with its long history, strong talent pool, and experienced community banking team helps further establish Glacier in Utah and set the stage for future growth.”
The transaction should be 0.6% accretive to Glacier's 2020 earnings per share, excluding merger-related costs. It should also be accretive to Glacier’s tangible book value.
Glacier said it plans to cut 18% of FNB’s annual noninterest expense. The company expects to incur $7.4 million in merger-related expenses.
Glacier was advised by Piper Jaffray and Miller Nash Graham & Dunn. FNB was advised by Sandler O’Neill and Sheppard, Mullin, Richter & Hampton.