National Bank Holdings, the parent company for NBH Bank, announced that it plans to acquire Peoples, Inc., the bank holding company of Colorado-based Peoples National Bank and Kansas-based Peoples Bank.
The transaction adds approximately $865 million of assets, $483 million of loans held for investment and $719 million of deposits to NBH’s holdings.
Peoples also boasts a robust retail mortgage origination channel that originates more than $1 billion in mortgages per year.
Under the terms of the agreement, Peoples’ shareholders will receive approximately $36.3 million in cash and approximately 3.4 million shares of NBH common stock.
The aggregate cost for the acquisition is approximately $143 million.
In a release, NBH said that the acquisition will boost its presence in some target markets.
“The transaction with Peoples bolsters our presence in our home markets of the Colorado Front Range and the greater Kansas City region. More specifically, the acquisition provides a strong market position in the attractive Colorado Springs and Overland Park markets and expands our franchise into northern New Mexico,” NBH CEO Tim Laney said.
“In addition, we believe Peoples brings us one of the strongest retail mortgage banking platforms based within a community bank,” Laney added.
“We expect this transaction will be strongly accretive and will accelerate NBH's trajectory toward our financial targets,” Laney continued.
“We believe that our companies are stronger together and that we share a common vision for delivering great returns by building quality relationships with our clients,” Laney added. “This merger will combine the best of both of our organizations and we look forward to welcoming Peoples' terrific team of bankers to our company.”
Under the terms of the deal, Peoples will divest or wind down its national mortgage business, operated out of Peoples Bank, by the end of 2017,the companies said.
Of the deal, Wint Winter, the chairman and CEO of Peoples, said that the acquisition is the right move for the company.
“We are very pleased to be joining NBH. Our family has built Peoples over the past 5 decades with a focus on caring for our customers, employees and the communities we serve,” Winter said. “We found those same values at NBH and are proud to partner with the NBH family.”
The companies said that the deal is expected to close in the fourth quarter.