Independent Bank Group in McKinney, Texas, has agreed to buy Guaranty Bancorp in Denver.
The $8.8 billion-asset Independent said in a press release Tuesday that it will pay $1 billion in stock for the $3.7 billion-asset Guaranty. The deal is expected to close in the fourth quarter.
The acquisition is the year’s third-biggest bank deal, trailing only Fifth Third Bancorp’s agreement to buy MB Financial in Chicago and Cadence Bancorp’s pending purchase of State Bank Financial in Atlanta. All three deals have been announced in the last nine days.
Guaranty has 32 branches, including 14 around Denver. It has $3 billion in deposits and $2.8 billion in loans.
Independent has eight branches in Colorado.
“This transaction represents the build out of our Colorado footprint through the acquisition of a high-quality bank operating in dynamic markets along the Front Range,” David Brooks, Independent’s chairman and CEO, said in the release.
Guaranty brings a committed management team, consistent level of high profitability, clean balance sheet, strong core deposit base, and a track record of growth,” Brooks added.
Independent said it expects the acquisition to be 6.5% accretive to its 2020 earnings per common share. It should take about three years to earn back the expected 4.7% dilution to Independent’s tangible book value per share.
Paul Taylor, Guaranty’s president and CEO, and Edward Cordes, Guaranty’s chairman, will join Independent’s board. Michael Hobbs, president of Guaranty’s bank, will become Independent’s Colorado market CEO.
Wachtell, Lipton, Rosen & Katz advised Independent, and Stephens provided a fairness opinion. Keefe, Bruyette & Woods and Shapiro Bieging Barber Otteson advised Guaranty.