National Bank in Denver to buy Utah bank

National Bank Holdings in Denver has agreed to buy Community Bancorp. in Provo, Utah.

The $7.3 billion-asset National Bank said in a press release Monday that it will pay $136 million of cash and stock for the $814 million-asset parent of Rock Canyon Bank. The deal, which is expected to close in the second half of this year, priced Rock Canyon at 180% of its tangible book value. 

National Bank would have $9.6 billion of assets following the acquisitions of Rock Canyon and Bank of Jackson Hole.

“Our focus on expanding [National Bank’s] presence in high-performing U.S. markets is again demonstrated by the announcement of our intent to acquire Rock Canyon Bank,” Tim Laney, the company’s chairman, president and CEO, said in the release.

"Rock Canyon Bank’s highly successful SBA business strategy de-risks the balance sheet, produces strong fee income, and is scalable across our franchise,” Laney added. 

Rock Canyon has $494 million of loans and $737 million of deposits. 

National Bank said it expects the deal to be 25% accretive to its 2023 earnings per share. It should take a little more than two years for the company to earn back any dilution to its tangible book value. 

The company expects to incur $9 million of merger-related expenses. 

BofA Securities and Squire Patton Boggs (US) advised National Bank. Kirton McConkie advised Community Bancorp.