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Wednesday's Bank Stocks: Glacier Bancorp gains following deal

Glacier Bancorp Inc. stock gained 2.07% to $33.56 on Wednesday, June 7, following news the company will acquire Buena Vista, Colo.-based Columbine Capital Corp. and its subsidiary Collegiate Peaks Bank.

The transaction, valued at roughly $73.9 million, marks the Kalispell, Mont.-based company's eighth deal in five years, and its fourth in Colorado. It is expected to bolster the company's presence in the state with five additional branch locations, and will help Glacier to cross the $10 billion asset threshold with added heft.

Sandler O'Neill & Partners analyst Matthew Forgotson called the deal a "typical Glacier acquisition."

"Glacier’s story is in a great place right now with strong organic growth momentum and an acquisition tailwind likely to put modest upward pressure on profitability metrics over the course of the year," Forgotson wrote in a research note.

D.A. Davidson & Co. analyst Jeff Rulis noted the deal helps to fill the "Durbin hole," and will allow the company to kick-start its crossing of the $10 billion threshold during the first quarter of 2018.

"The deal timing appears well placed by treading water this year, but the bank gets a jump on building assets early next year," Rulis wrote.

The SNL U.S. Bank Index rose 1.09% to 519.40, while the SNL U.S. Thrift Index ticked up 0.40% to 879.01. In the broader markets, the Nasdaq composite index gained 0.36% to 6,297.38, the Dow Jones Industrial Average was up 0.18% to 21,173.69 and the S&P 500 grew 0.16% to 2,433.14.

Bank of America Corp. added 1.66% to $22.60, Citigroup Inc. gained 1.43% to $61.88, JPMorgan Chase & Co. increased 1.15% to $83.91 and Wells Fargo & Co. ticked up 0.54% to $52.09.

Among notable movers, 1st Source Corp. jumped 3.18% to $46.11, Cathay General Bancorp added 3.08% to $36.53, International Bancshares Corp. gained 2.55% to $34.20 and Bank of Hawaii Corp. expanded 2.27% to $78.74.

There were no notable movers in the thrift space.

In economic news, mortgage applications increased 7.1% from a week ago, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ended June 2.

Market prices and volumes are current as of the time of publication and are subject to change.