People’s Utah Bancorp in American Fork has agreed to buy seven branches in Utah from Banner Corp. in Walla Walla, Wash.
The $1.7 billion-asset People’s Utah said in a press release Thursday that it will also gain $260 million in loans and $180 million in deposits from the acquisition.
The company will pay a $15.3 million premium for the deposits. The deal is expected to close in the fourth quarter.
The branches are in markets such as Salt Lake City, Provo, Bountiful and South Jordan. People’s Utah said it would consolidate branches in Woods Cross and Orem into its existing branches.
The deal should be immediately accretive to People’s Utah’s earnings per share. The company said it expects the deal to add $3 million to $3.5 million in net income in the first year after completion.
“This transaction will provide our existing customers with added convenience and service and our new customers with the opportunity to enjoy the outstanding personalized service and commitment of a Utah-based community bank,” Richard Beard, People’s Utah’s president and CEO, said in the release.
D.A. Davidson and Dorsey & Whitney advised People’s Utah. Davis Wright Tremaine advised Banner.