Iowa-based Grinnell Bancshares Inc., the bank holding company for Grinnell State Bank, agreed to acquire The Colorado Bank and Trust Co. of La Junta.

Upon completing the deal, The Colorado Bank and Trust will become a subsidiary of Grinnell Bancshares and remain a separately chartered State of Colorado commercial bank. Brad Jones will remain president of the La Junta, Colo.-based bank.

S&P Global Market Intelligence valuations for bank and thrift targets in the Southwest region between March 28, 2022, and March 28, 2023, averaged 165.02% of book and 176.90% of tangible book and had a median of 14.14x last-12-months earnings, on an aggregate basis.

With the completion of the deal, Grinnell Bancshares will enter Otero County, Colo., with one branch to be ranked fourth with a 13.62% share of approximately $555.95 million in total market deposits, and will enter Pueblo County, Colo., with one branch to be ranked eighth with a 3.52% share of approximately $2.38 billion in total market deposits.

As of Dec. 31, 2022, The Colorado Bank and Trust had about $177 million in assets, while Grinnell State Bank had about $448 million in assets, according to a March 28 news release.

Tony Jones, a vice president of Grinnell Bancshares, along with several others from the company will join The Colorado Bank and Trust board.

Grinnell Bancshares was advised by Ernie Panasci with the Denver law firm of Spierer Woodward Corbalis & Goldberg PC. Gerrish Smith Tuck PC was financial adviser and legal counsel to The Colorado Bank and Trust.

To use S&P Capital IQ Pro's branch analytics tools to compare market overlap, click here. To create custom maps, click here.