InBankshares in Denver has agreed to buy Legacy Bank in Wiley, Colo.
The $705 million-asset InBankshares said in a press release Wednesday that it will pay $56 million in cash and stock for the $497 million Legacy. The deal is expected to close in the second quarter.
Legacy, founded in 1907, has nine branches, $316 million of loans and $426 million of deposits.
“We are excited to announce this partnership that expands upon our commitment to serving the Colorado Front Range and northern markets by adding new and important growth markets to InBank’s footprint,” Ed Francis, InBankshares’ chairman, president and CEO, said in the release.
“Legacy brings an experienced team of bankers and has a similar commitment to serving clients to that of InBank,” Francis added. “Legacy is great fit for us geographically, strategically, financially, and culturally.”
Legacy, before the deal closes, will distribute to its shareholders other real estate owned and other assets. The bank will also pay its shareholders a special cash dividend based on its tangible common equity at the closing, minus certain seller-paid transaction expenses.
The Esgar family will receive a board position at InBankshares. Andrew Trainor, Legacy’s regional president, will join InBank’s executive team.
InBankshares said it expects the acquisition to be more than 50% accretive to its earnings per share in 2023. It will take between two and three years for the company to earn back any dilution to its tangible book value.
Stephens and Otteson Shapiro advised InBankshares. Olsen Palmer and Lewis Roca Rothgerber Christie advised Legacy.