Glacier Bancorp in Kalispell, Mont., is continuing to expand in Arizona with a deal to purchase State Bank Corp. in Lake Havasu City.
The $135 million deal, announced late Monday, is expected to close late this year or early next year. The $12.7 billion-asset Glacier said in a press release that it will merge the $679 million-asset State Bank into its Foothills Bank.
State Bank has 10 branches in seven Arizona markets, including Phoenix and Prescott. The acquisition would triple Glacier’s branch operations in Arizona.
Glacier will also gain several lending teams and a low-cost local deposit base, President and CEO Randy Chesler said in the release. State Bank “has an experienced team of dedicated employees, deep market knowledge and strong customer relationships,” he said.
Excluding one-time merger costs, Glacier said it expects the transaction to be immediately accretive to earnings per share.
Brian Riley, State Bank's president and CEO, would retain both titles and run Glacier's Arizona operations.
The deal “provides our shareholders with liquidity and significantly enhances our long-term strategic capabilities,” Riley said in the release.
State Bank is Glacier's 12th acquisition in the past seven years. The company has expanded from Montana to seven other states across the western United States.
