Montana’s Glacier Bancorp Inc., based on Kalispell, has agreed to acquire Heritage Bancorp, the bank holding company for Heritage Bank of Nevada, a community bank based in Reno. The acquisition marks Glacier’s 22nd announced acquisition since 2000 and it’s 11th announced transaction in the past six years. Heritage Bank provides banking services to individuals and businesses throughout northern Nevada with seven banking offices located in Carson City, Gardnerville, Reno and Sparks. As of Dec. 31, 2018, it had total assets of $829.7 million, gross loans of $595.6 million and total deposits of $720.5 million.
The boards of Glacier and Heritage unanimously approved the transaction, which is subject to regulatory approval and other customary conditions of closing. The agreement provides that upon closing of the transaction, Heritage shareholders are to receive four shares of Glacier stock and $12 in cash for each Heritage share. Based on the closing price of $41.19 for Glacier shares on April 3, the transaction would result in an aggregate value of $240.7 million (including the value of Heritage options). Upon closing of the transaction, which is anticipated to take place in the third quarter, Heritage Bank will become Glacier’s 16th bank division and will expand Glacier’s franchise footprint into Nevada.
“This is a rare opportunity to expand our presence into northern Nevada,” said Randy Chesler, Glacier’s president and CEO, “a fast-growing market with a diverse economy that is continually attracting substantial investment from large technology and growth companies. Reno’s convenient positioning near the San Francisco Bay area has created a natural migration of residents seeking a lower cost, business friendly location.”
The transaction will be immediately accretive to Glacier’s earnings per share, excluding one-time transaction-related expenses.
Stan Wilmoth, president and CEO of Heritage, said, “Glacier’s community banking model aligns very well with our culture and approach to banking. Glacier will 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 our clients, employees and shareholders.”