Kalispell, Mont.-based Glacier Bancorp Inc. agreed to acquire Lake Havasu City, Ariz.-based State Bank Corp. in a cash-and-stock deal valued at $135.3 million.
State Bank shareholders will receive 0.3706 of a Glacier Bancorp share and $1.69 in cash for each stock they own under the terms of the deal. State Bank of Arizona will merge into Glacier Bancorp's Foothills Bank division.
The deal is expected to close either late in the fourth quarter of 2019 or early in the first quarter of 2020. Glacier Bancorp expects the deal to be immediately accretive to EPS, excluding one-time transaction-related expenses.
On an aggregate basis, S&P Global Market Intelligence calculates that the deal value is 191.4% of common equity and 212.1% of tangible common equity, and 15.6x earnings. The deal value is 19.88% of assets, 22.79% of deposits, and the tangible book premium to deposits ratio is 12.05%.
The deal carries a one-day premium of 25.82% and a one-month premium of 34.66%.
S&P Global Market Intelligence valuations for bank and thrift targets in the West region between Sept. 30, 2018, and Sept. 30, 2019, averaged 178.56% of book and 181.20% of tangible book and had a median of 16.34x last-12-months earnings, on an aggregate basis, and averaged 177.60% of book and 181.39% of tangible book and had a median of 16.74x last-12-months earnings, on a per-share basis.
Glacier Bancorp will enter Mohave County, Ariz., with five branches to be ranked third with an 11.77% share of approximately $3.05 billion in total market deposits. It will also enter Maricopa County, Ariz., with one branch to be ranked no. 57 with a 0.00% share of approximately $107.88 billion in total market deposits. The deal will also enable Glacier Bancorp to expand in Yavapai County, Ariz., by four branches to be ranked fifth with a 7.18% share of approximately $4.09 billion in total market deposits.
As of June 30, State Bank of Arizona had total assets of $678.6 million, according to a news release. Glacier Bancorp had assets of about $12.68 billion as of the same date, according to S&P Global Market Intelligence data.
Keefe Bruyette & Woods served as financial adviser and Miller Nash Graham & Dunn LLP served as legal counsel to Glacier Bancorp. State Bank Corp. was advised by D.A. Davidson & Co. as financial adviser and Hogan Lovells US LLP as legal counsel.
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