Glacier Bancorp buys First National Bank of the Rockies

MONTANA I Glacier Bancorp, Inc. (NASDAQ: GBCI) last week announced the signing of a definitive agreement to acquire First National Bank of the Rockies (FNBR), a community bank based in Grand Junction, Colorado.
The acquisition marks Glacier’s 15th acquisition since 2000 and its third announced transaction in the past 15 months. FNBR provides community banking services to individuals and businesses in northwestern Colorado with 10 banking offices located in Grand Junction, Steamboat Springs, Meeker, Rangely, Craig, Hayden and Oak Creek. As of March 31, the bank had total assets of $343 million, gross loans of $132 million and total deposits of $305 million.
The boards of Glacier and FNBR Holding Corporation (FNBR’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 FNBR Holding Corporation shareholders of $16.3 million in cash and 555,733 shares of Glacier common stock.
Based on the closing price of $25.06 for Glacier shares on May 8, the transaction would result in an a aggregate value of $30.3 million. As of March 31, FNBR Holding Corp. had consolidated tangible equity of $32.7 million. Upon closing of the transaction, which is anticipated to take place in the third quarter, FNBR will be merged into Glacier Bank and become part of the Bank of the San Juans banking division.
“We are excited to be adding First National Bank of the Rockies to the Glacier family of banks,” stated Mick Blodnick, Glacier’s president and chief executive officer. “This combination allows us to continue to expand in Colorado’s Western Slope, a very attractive market we have targeted for continued expansion. FNBR brings to us a sizable community bank with a long history of serving northwestern Colorado.
“The region offers attractive long-term growth prospects with a solid economic base of energy, agriculture, tourism, mining and healthcare.” Blodnick added, “FNBR serves the region well, with respected management, strong customer relationships and an excellent core deposit base.”
Blodnick also noted that the transaction will be immediately accretive to Glacier’s earnings per share and tangible book value per share.
Pete Waller, chairman, president and CEO of FNBR, commented, “We are excited to join the Glacier family of banks. FNBR’s 110-year legacy in western Colorado has molded strong ties with our customers and the communities in which we serve.
“Consumers in western Colorado will benefit from the expanded products, services, and lending capabilities that our affiliation with Glacier will bring,” he said. “Our management and staff look forward to the new growth opportunities that are sure to result from the combination.”
Glacier Bancorp, Inc. is a regional bank holding company providing commercial banking services in 72 communities in Montana, Idaho, Utah, Washington, Wyoming and Colorado. It is headquartered in Kalispell, Montana.