American Fork, Utah-based People's Intermountain Bank completed its acquisition of seven Banner Bank branches in Utah, along with $165 million in low-cost deposits and $250 million in loans.
People's Intermountain Bank, a unit of People's Utah Bancorp, paid a deposit premium of $13.4 million based on average deposits at closing.
People's Intermountain Bank also completed the conversion of the branches — located in Salt Lake City, Provo, South Jordan, Woods Cross, Orem, Salem, and Springville — onto its core banking platform. The Woods Cross and Orem branches were consolidated into existing Bank of American Fork Bountiful and Orem branches, respectively. The five remaining branches will operate under the name "Bank of American Fork, a division of PIB."
People's Utah Bancorp President and CEO Richard Beard said that with the transaction — coupled with the company's acquisition of St. George, Utah-based Town & Country Bank Inc. expected to be completed in the fourth quarter — the company will be able to further deploy capital and grow along the I-15 corridor of the Intermountain Region. "Upon the completion of both transactions, we expect total assets to be in excess of $2.0 billion, and we expect the transactions will be immediately accretive to earnings, after acquisition related costs," Beard added.
As of June 30, People's Intermountain Bank had assets of approximately $1.68 billion, while Banner Corp.'s Walla Walla, Wash.-based subsidiary had approximately $9.93 billion in assets.