Gunnison, Utah-based Gunnison Valley Bank is merging with Cedar City, Utah-based State Bank of Southern Utah.
The terms of the deal were not disclosed.
The transaction is expected to close in the first quarter. Following the merger, the Gunnison Valley Bank office will bear the State Bank name.
SNL valuations for bank and thrift targets in the Southwest region between Dec. 31, 2017, and Dec. 31, 2018, averaged 188.66% of book, 197.09% of tangible book and had a median of 20.64x last-12-months earnings, on an aggregate basis.
Raymond James & Associates Inc. served as financial adviser and Lewis Roca Rothgerber Christie LLP served as legal counsel for State Bank of Southern Utah. Gunnison Valley Bank was advised by Shapiro Bieging Barber Otteson LLP as legal counsel.
State Bank of Southern Utah, a unit of Southern Utah Bancorp., had assets of $1.08 billion as of Sept. 30, 2018, according to S&P Global Market Intelligence data. Gunnison Valley Bank, a unit of GV Bancorp Inc., had $70.6 million in assets as of the same date.
Southern Utah Bancorp will enter Sanpete County, Utah, with one branch to be ranked third with 27.99% share of approximately $227.30 million in total market deposits.