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National Bank Closes USD 143m Acquisition of Peoples.

MANews-(C)2009-2018

5 January 2018 - Colorado, US-based bank holding company National Bank Holdings Corp. (NBH) (NYSE: NBHC) has closed the acquisition of US-based bank holding company Peoples, Inc. bank holding company of Colorado-based Peoples National Bank and Kansas-based Peoples Bank, the company said.

Under the terms of the agreement, Peoples shareholders receive approximately USD 36.3m of cash consideration and approximately 3.4m shares of NBH common stock.

The transaction adds approximately USD 865m of assets, USD 483m of loans held for investment and USD 719m of deposits, as well as franchise-centric retail mortgage business, which originates over USD 1.0bn of mortgage loans per year.

As part of the agreement, Peoples will divest or wind down its national mortgage business, operated out of its Kansas-based Peoples Bank by the end of 2017.

NBH expects the transaction to result in a high-teens accretion to earnings per share in the first full year of operations, less than a 5% dilution to tangible book value with an earn back period of less than three years, and an internal rate of return of approximately 20%.

The transaction has been unanimously approved by the board of directors of each company and is subject to normal regulatory approvals and other customary closing conditions.

NBH said the transaction bolsters its presence in Colorado and Kansas City and expands its franchise into northern New Mexico, US. The company expects this transaction will accelerate NBH's trajectory toward its financial targets.

National Bank Holdings Corp. operates a network of 86 banking centres located in Colorado, the greater Kansas City region and Texas, US. Peoples, Inc. has two bank subsidiaries, Peoples Bank, a Kansas state chartered commercial bank, and Peoples National Bank, a national association.

Keefe, Bruyette and Woods, A Stifel Co, served as financial advisor to NBH in connection with this transaction and Wachtell, Lipton, Rosen and Katz served as NBH's legal counsel. The Capital Corp. served as financial advisor to Peoples in connection with this transaction and Lathrop Gage LLP served as Peoples' legal counsel.

Country: USA

Sector: Banking/Financial Services

Target: Peoples, Peoples National Bank, Peoples Bank

Buyer: National Bank Holdings, NBH Bank

Vendor:

Deal size in USD: 143m

Type: Corporate Acquisition

Financing: Cash and Stock

Status: Closed

Buyer advisor: Keefe, Bruyette and Woods , Wachtell, Lipton, Rosen and Katz ,

Comment:

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Publication:M & A Navigator
Geographic Code:1U8CO
Date:Jan 5, 2018
Words:384
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