Colorado-based National Bank Holdings Corp., the holding company for NBH Bank, agreed to acquire Utah-based Community Bancorp., the holding company for Rock Canyon Bank.

Under the terms of the deal, Community Bancorp. shareholders will receive approximately $16.1 million of cash consideration and about 3.1 million shares of National Bank Holdings' common stock, subject to certain potential adjustments. The transaction has a value of $136.0 million in the aggregate, based on National Bank Holdings' closing share price of $38.69 on April 14.

The deal is expected to close in the second half of 2022.

At announcement, S&P Global Market Intelligence calculates the deal value to be 189.44% of common equity and of tangible common equity, 14.15x earnings, 16.70% of assets and 18.46% of deposits. The tangible book premium to core deposits ratio is 9.84%.

Market Intelligence valuations for bank and thrift targets in the Southwest region between Apr. 18, 2021, and Apr. 18, 2022, averaged 181.98% of book and 192.39% of tangible book and had a median of 15.05x last-12-months earnings, on an aggregate basis.

Upon completion of the transaction, National Bank Holdings will have approximately $9.6 billion in pro forma assets, including $6.0 billion in total loans and $8.4 billion in total deposits when combined with the previously announced acquisition of Jackson, Wyo.-based Bancshares of Jackson Hole Inc., according to a news release.

Based on Market Intelligence data, with the completion of the deal, National Bank Holdings will enter Utah County, Utah, with five branches to be ranked eighth with a 3.68% share of approximately $16.44 billion in total market deposits; Washington County, Utah, with one branch to be ranked eighth with a 1.7% share of approximately $3.69 billion in total market deposits; and Millard County, Utah, with one branch to be ranked third with a 4.37% share of approximately $201.78 million in total market deposits.

Rock Canyon Bank will operate as Hillcrest Bank upon completion of the deal. Rock Canyon Bank had $814.3 million in total assets, including $494.2 million in total loans and $736.6 million in total deposits at Dec. 31, 2021.

BofA Securities Inc. was financial adviser and Squire Patton Boggs (US) LLP was legal counsel to National Bank Holdings. Kirton McConkie was legal counsel to Community Bancorp.

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