The acquisition marks Glacier’s 17th acquisition since 2000 and its fifth announced transaction in the past two and a half years. Cañon National Bank provides banking services to individuals and businesses in south central Colorado, with nine banking offices located in Colorado Springs, Pueblo, Pueblo West, Cañon City, Colorado City, and Florence.
As of June 30, 2015, Cañon National Bank had total assets of $253 million, gross loans of $159 million and total deposits of $225 million.
The boards of Glacier and Cañon Bank Corporation (Cañon National Bank’s holding company) unanimously approved the transaction, which is subject to regulatory approval and other customary conditions of closing. The transaction provides for the payment to Cañon Bank Corporation shareholders of $16.25 million in cash and 554,229 shares of Glacier common stock.
Based on the closing price of $28.01 for Glacier shares on July 30, 2015, the transaction would result in an aggregate value of $31.8 million. As of June 30, 2015, Cañon Bank Corporation had consolidated tangible equity of $21.4 million. Upon closing of the transaction, which is anticipated to take place in the fourth quarter of 2015, the branches of Cañon National Bank will be merged into Glacier Bank and become part of the Bank of the San Juans banking division.
"We are excited to be adding Cañon National Bank to the Glacier family of banks," stated Mick Blodnick, Glacier’s President and Chief Executive Officer. "This combination allows us to continue our expansion in Colorado, with our first acquisition of a bank on the Front Range. This addition opens several new vibrant markets to us in south central Colorado."
Blodnick added, "Cañon National Bank adds a sizable community bank with a well-established history of serving the region for over 40 years. Cañon National Bank also brings outstanding asset quality, solid earnings, strong management, and a solid core deposit base." Blodnick also noted that the transaction will be immediately accretive to Glacier’s earnings per share.
Daniel Tanner, Chairman and CEO of Cañon National Bank, commented, "We are excited to be partnering with the Glacier organization. Cañon National Bank has been serving customers in our communities for over 40 years and our commitment to those communities is very important."
Willy Faris, Cañon National Bank’s President, went on to say, "As part of Glacier Bank, our customers will benefit from an enhanced line of service offerings, greater lending capacity, and expanded office locations. We look forward to becoming part of their well respected and highly successful community banking organization." Mr. Faris will continue on with Glacier and serve as a Regional Market President in the markets where Cañon National Bank currently operates.
