Montana-based commercial bank Glacier Bancorp has agreed to acquire Altabancorp, the holding company of Utah-based Altabank, for an aggregate value of $933.5m.
Under the terms of the merger agreement, Alta shareholders will receive 0.7971 shares of Glacier stock for each Alta share held, upon closing of the transaction.
The transaction is valued at an average of $933.5m, based on the closing price of $61.51 for Glacier shares on 17 May 2021.
Both Glacier and Alta boards unanimously approved the transaction, which is subject to regulatory approval, Alta shareholder approval and other customary conditions of closing.
Glacier is said to have received voting agreements from Alta’s directors, executive officers and principal shareholders, including members of the Gunther family.
The transaction is anticipated to close in the fourth quarter of 2021.
Upon closing, Altabank will operate as Glacier’s 17th bank division, under its existing name.
Glacier president and CEO Randy Chesler said: “We are excited and proud to welcome Altabank to the Glacier family of banks. This is an exceptional opportunity to solidify Glacier’s presence in the booming Utah market by partnering with the largest community bank in the state.
“We have been keenly focused on building our presence in Utah and this opportunity checks all the boxes. This acquisition is consistent with our history of adding high-quality community banks to our proven banking model.
“Altabank has been serving customers in Utah for over 100 years, and has developed a leading position and lasting legacy in the markets it serves.”
The transaction marks the second acquisition of a Utah-based bank for Glacier in the last two years, following First Community Bank based in Layton, Utah in 2019.
Altabank is a full-service bank, engaged in providing loans, deposit and cash management services to businesses and individuals through its 25 branches in Utah.
The bank had total assets valuing $3.5bn, total loans of $1.8bn and total deposits of $3.2bn as of 31 March 2021.
D.A. Davidson & Co. served as financial advisor and Miller Nash Graham & Dunn as legal counsel to Glacier on the transaction.
Keefe, Bruyette & Woods, A Stifel Company served as financial advisor and Jones Day as legal counsel to Altabancorp.
Alta president and CEO Len Williams said: “Altabank has been a market leader in Utah for decades. In our constant quest to be bigger, better and stronger, the opportunity to join the Glacier family of banks was an undeniably great one for us.
“Becoming part of the Glacier family gives us the chance to compete with anyone, anywhere in our market, all while maintaining our local autonomy.”