Glacier in Montana to enter Texas with Guaranty Bank acquisition
Glacier Bancorp in Kalispell, Mont., will enter Texas after agreeing to buy Guaranty Bancshares in Mount Pleasant, Texas.
The $28.2 billion-asset Glaicer said in a press release that it will pay $476.2 million in stock for the $3.2 billion-asset Guaranty. The deal, which is expected to close in the fourth quarter, priced Guaranty at 162% of its tangible book value.
Guaranty has 33 branches, $2.1 billion of loans, and $2.7 billion of deposits. Guaranty Bank & Trust will operate as a new banking division.
“This is a compelling opportunity to further expand our presence in the Southwest,” Randy Chesler, Glacier’s president and CEO, said in the release.
“Guaranty fits strategically and culturally within the unique Glacier business model and will allow us to enter a complementary state with an exceptional demographic profile, strong growth prospects, and a business-friendly operating environment,” Chesler added.
The deal should be 7.4% accretive to Glacier’s 2026 earnings per share. It should take less than a year for Glacier to earn back any dilution to its tangible book value.
Glacier plans to cut about a fifth of Guaranty’s annual noninterest expenses, and it expects to incur about $29.8 million of merger-related expenses. Guaranty will lose about $4.6 million in annual pretax interchange fee income due to the Durbin Amendment.
Glacier was advised by Stephens and Miller Nash. Guaranty was advised by Keefe Bruyette & Woods and Norton Rose Fulbright US.