Guaranty Bancorp in Denver has agreed to buy Home State Bancorp in Loveland, Colo.

The $2.4 billion-asset Guaranty said in a press release Wednesday that it will pay $133.7 million in cash and stock for the $875 million-asset Home State. The deal, which is expected to close in the third quarter, values Home State at 166% of its tangible book value.

Guaranty said it expects earnings accretion of about 14.8% next year. It should take about 4.4 years to earn back any dilution to Guaranty's tangible book value. Guaranty said it expects to incur $3.9 million in merger-related expenses, though it also plans to cut $10 million in costs, or roughly 42% of Home State's 2016 noninterest expense.

"Our customers will benefit from an expanded branch network, a broader selection of products and service, and our increased lending capacity to help them reach their financial goals," Paul Taylor, Guaranty's president and chief executive, said in the release.

Guaranty said it plans to finance the cash portion of the deal by issuing about $35 million in subordinated debt.

Harry Devereaux, Home State's president, is expected to join Guaranty in an executive role. His father, Jack Devereaux Sr., ran Home State for 35 years after buying it in 1970.

Keefe, Bruyette & Woods and Bieging Shapiro & Barber advised Guaranty. KPMG Corporate Finance, Bent St. Vrain & Co. and Lewis Roca Rothgerber Christie advised Home State, while Sheshunoff & Co. provided the company's board with a fairness opinion.

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