People’s Utah Bancorp (PUB) is growing, having recently announced plans to acquire seven Banner Bank branch locations in Utah.
PUB announced that its banking subsidiary, People’s Intermountain Bank (PIB) has signed a purchase and assumption agreement to acquire roughly $260 million in loans and the seven branches from Banner Corp.’s banking subsidiary Banner Bank. The branches have approximately $180 million in low-cost deposits, PUB said.
Financial terms were not disclosed. The deposit premium is estimated to be $15.3 million based on average deposits at closing, PUB said.
“We are thrilled to be expanding our footprint with these additional branch locations,” said Richard Beard, PUB’s president and chief executive officer. “This transaction will provide our existing customers with added convenience and service and our new customers with the opportunity to enjoy the outstanding personalized service and commitment of a Utah-based community bank.
“This transaction, coupled with the Town & Country Bank acquisition we announced two months ago, allows us to further deploy our solid capital base and to strategically grow our company along the I-15 corridor of the Intermountain Region. The purchase of these assets and assumption of liabilities will further extend our position as the largest community bank in Utah. We expect the transaction will be immediately accretive to earnings once completed.”
The branches — which will operate under the name of Bank of American Fork, a division of PIB — are in Salt Lake City, Provo, South Jordan, Woods Cross, Orem, Salem and Springville. Subject to regulatory approval, the Woods Cross and Orem branches are planned to be consolidated into the existing Bank of American Fork Bountiful and Orem branches, respectively.
The transaction is expected to close early in the 2017 fourth quarter and is subject to certain closing conditions, including receipt of regulatory approval. D.A. Davidson & Co. acted as financial advisor to PUB and Dorsey & Whitney LLP acted as legal counsel. Davis Wright Tremaine LLP acted as Banner’s legal counsel.
People’s Intermountain Bank has 20 locations in two banking divisions: Bank of American Fork and Lewiston State Bank. PUB also has a leasing division, GrowthFunding Equipment Finance, and a mortgage division, People’s Intermountain Bank Mortgage.
PUB announced in late May it had agreed to merge Town & Country Bank Inc., based in St. George, into People’s Intermountain Bank. Town & Country Bank has a branch in St. George and a loan production office in Sandy. The Town & Country Bank office and PUB’s Bank of American Fork branch in St. George are expected to be consolidated in January 2018 and operate under the name People’s Town & Country Bank. The Sandy loan production office is expected to be consolidated with the current Bank of American Fork Sandy branch and will operate under the name Bank of American Fork.