InBankshares in Denver has agreed to acquire Legacy Bank in Wiley, Colorado, for $56 million in cash and stock.
The acquisition would extend InBankshares’ Colorado footprint and create a $1.2 billion-asset community bank with branches spread across the state and part of neighboring New Mexico. Legacy would merge into the buyer’s bank unit, InBank.
"This is expected to be a transformational merger for InBank with the potential to gain significant scale and operating leverage, increase our market capitalization, and significantly improve our earnings power,” Ed Francis, chairman and CEO of InBankshares, said in a press release issued after markets closed Tuesday.
"The completion of this transaction will help make InBank a formidable competitor in the Colorado Front Range banking marketplace," Francis added.
Legacy has $426 million of deposits and $497 million of assets, including $316 million of loans. It has nine branches that span the Colorado cities of Pueblo, Pueblo West, Cañon City, Buena Vista, Lamar, Wiley and Colorado Springs.
The $705 million-asset InBankshares reported third-quarter loans of $426 million and deposits of $603 million.
The combined bank would have 12 branches and two loan production offices in Colorado, and five branches in northern New Mexico.
The deal is expected to close in the second quarter of 2022. InBankshares expects the acquisition to be 50% accretive to its earnings per share within the first year of combined operations. It estimated it would earn bank tangible book value dilution in two and a half years.
