Glacier On Buyout Spree, To Buy Heritage Bancorp For $240.7M
Zacks Investment Research | Apr 03, 2019 09:10PM ET
Glacier Bancorp (NASDAQ:GBCI) has signed a stock-cash merger agreement with the bank holding company for Heritage Bank of Nevada — Heritage Bancorp. Notably, Glacier expects the deal to be immediately accretive to earnings per share, excluding one-time transaction-related costs.
The deal has been valued at $240.7 million and is expected to close in the third quarter of 2019. Though the transaction has received unanimous approval from the boards of Glacier and Heritage, it is subject to necessary regulatory approval and other conditions of closing.
Based in Reno-NV, Heritage had total assets of $829.7 million, gross loans of $595.6 million and total deposits of $720.5 million as of Dec 31, 2018. Also, with this buyout, Glacier will have access to Heritage’s seven banking offices located in Carson City, Gardnerville, Reno and Sparks.
Per the terms of agreement, Glacier will pay four of each share of its common stock and $12 in cash for each share of Heritage.
Randy Chesler, President and CEO at Glacier said, “This is a rare opportunity to expand our presence into Northern Nevada, a fast-growing market with a diverse economy that is continually attracting substantial investment from large technology and growth companies.”
Opportunistic buyouts continue to be a key part of the company’s growth strategy. Prior to this, in January 2019, Glacier announced plans to acquire FNB Bancorp and its wholly-owned subsidiary, The First National Bank of Layton.
Further, in 2018, the company had acquired two community banks — Inter-Mountain Bancorp and Columbine Capital Corp. — which together contributed to about 15% growth in asset size in 2018. Also, these buyouts expanded Glacier’s reach in areas such as Montana and Mountain and Front Range communities of Colorado.
Glacier’s expansion into carefully selected markets bode well for the long term and is indicative of its strong financial position. The company has witnessed decent organic growth over the last few years and is well poised to benefit from the improving economic backdrop.
Shares of Glacier have gained 7.4% over the past year against the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.