US-based regional bank holding company Glacier Bancorp has signed a definitive agreement to acquire State Bank Corp. (SBC), the bank holding company for State Bank of Arizona for $135.3m.
Under the agreement, State Bank of Arizona will be merged into Glacier’s Foothills Bank Division. The merged entity will operate as Foothills Bank.
Glacier Bancorp expects the deal to expand its operations in Arizona region, where it has been operating since more than 20 years.
The transaction marks Glacier Bancorp’s 23rd acquisition since 2000 and 12th transaction in the past seven years.
Glacier president and chief executive officer Randy Chesler said: “We are excited about our acquisition of State Bank Corp. and its combination with our Foothills Bank Division, as it establishes a leading community bank in Arizona.
“This acquisition is consistent with our history of adding high quality community banks to our proven banking model. State Bank Corp. has an experienced team of dedicated employees, deep market knowledge and strong customer relationships. Additionally, State Bank Corp.’s low cost relationship based deposits enhances the overall funding profile of our Arizona franchise.”
State Bank of Arizona is merged into Glacier Bancorp’s Foothills Bank Division
Under the agreement, SBC shareholders will receive 0.3706 shares of Glacier stock and $1.69 (£1.37) in cash for each SBC share upon closing of the transaction.
State Bank of Arizona operates from ten banking offices located in Bullhead City, Cottonwood, Kingman, Lake Havasu City, Phoenix, Prescott Valley and Prescott. It offers banking services to both individuals and businesses in the region.
The transaction is expected to be closed in late in the fourth quarter 2019 or early first quarter 2020.
For the transaction, Keefe, Bruyette & Woods, a Stifel Company, has served as financial advisor and Miller Nash Graham & Dunn served as legal counsel for Glacier.
DA Davidson & Co. acted as financial advisor while Hogan Lovells US served as legal counsel for State Bank Corp.
State Bank president and CEO Brian M Riley said: “We are very pleased to announce a partnership with Glacier Bancorp. Glacier’s community banking model and historic track record of success will seamlessly enhance and expand the banking experience for our customers.
“We are excited to join the Glacier team and look forward to the opportunities and benefits this combination will bring to our clients, employees, and shareholders.”
