Glacier in Montana takes prolific acquisition strategy to Idaho

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Serial acquirer Glacier Bancorp in Kalispell, Montana, is back at the M&A forefront.

The $28.2 billion-asset banking company, which more than tripled its asset base with a series of acquisitions over the past decade, said it would pay $245.4 million in stock to buy the $1.3 billion-asset Bank of Idaho Holding Co. in Idaho Falls.

It marks Glacier's 12th announced bank transaction in the past 10 years and its 26th deal since 2000.

Glacier said in a press release late Monday that the deal, expected to close in the second quarter, would give it 15 branches, three mortgage offices, $1 billion of loans and $1.1 billion of deposits. It would expand the Mountain West portion of Glacier's territory, which also includes the Southwest and Pacific Northwest.

Glacier President and CEO Randy Chesler said in the release that Idaho held special appeal because it is among the fastest-growing states in the country. Census Bureau data showed Idaho's population, on a percentage basis, grew at the seventh-highest rate in the country between 2023 and 2024.

The addition of Bank of Idaho would "secure our position as the leading community bank in the state," Chesler said.

"This is a unique opportunity to find a bank that not only fits strategically within our existing footprint but will also meaningfully expand our presence in strong core growth markets for Glacier," he said.

The Bank of Idaho operations would join three existing Glacier Bank divisions. The eastern Idaho business would merge into Glacier's Citizens Community Bank, the Boise operations would join Mountain West Bank, and the eastern Washington operations would mesh with Wheatland Bank.

"This acquisition continues our long history of consistently adding high-quality community banks to our proven banking model and we are enthusiastic about the future growth opportunities this acquisition will provide," Chesler said.

The transaction priced the seller at about 192% of its tangible book value. Glacier expects the deal to drive 3% accretion to its 2026 earnings per share. The bank estimated it would earn back 0.4% dilution to its tangible book value within a year.

The accretion estimate includes anticipated 30% cost savings of the seller's non-interest expense base. 

Glacier estimated it would pay $17.7 million in merger-related charges.

The boards of Glacier and Bank of Idaho approved the transaction. The deal awaits regulatory approvals and a Bank of Idaho shareholder vote.

Most recently, in early 2024, Glacier paid about $81 million in stock to buy Community Financial Group in Spokane, Washington. Community Financial had total assets of $754 million.

Also last year, Glacier bought six Montana branches — two in Billings and one each in Bozeman, Plentywood, Stevensville and Whitehall — from Denver-based Heartland Financial USA.

Glacier's largest acquisition to date closed in September 2021. It paid more than $850 million to buy Altabancorp in Utah. That deal gave it $3.5 billion of assets. It was Glacier's second acquisition of a Utah-based bank in two years. It finalized the acquisition of First Community Bank based in Layton, Utah, in 2019.