National Bank Holdings Corporation to acquire Peoples Bank parent company

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The parent company of Kansas-based Peoples Bank, which includes branches in Taos and Red River, has been acquired by Colorado-based National Bank Holdings Corporation.

The acquisition, announced in late June, expands National Bank Holdings Corporation's reach into Northern New Mexico and bolsters the company's franchise in the Colorado Front Range and the greater Kansas City region. The deal is expected to close in the fourth quarter of 2017.

"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," said Tim Laney, chief executive officer of National Bank Holdings Corporation in a statement to media. "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."

National Bank Holdings Corporation, founded in 2009 in Greenwood Village, Colorado, currently has a network of 86 community banks located in Colorado, the greater Kansas City region and Texas.

"In addition, we believe Peoples brings us one of the strongest retail Mortgage Banking platforms based within a community bank. We expect this transaction will be strongly accretive and will accelerate NBH's trajectory toward our financial targets," said Laney in a statement.

The transaction adds approximately $865 million of assets, $483 million of loans held for investment and $719 million of deposits, as well as a complementary franchise-centric retail mortgage business, which originates more than $1 billion of mortgage loans per year, according to a press release. In addition, Peoples brings more than 140 years of experience in serving its communities and the same dedication to common sense banking that has been at the core of NBH's success, according to the press release.

"We are very pleased to be joining NBH," said Wint Winter Jr., chairman and CEO of Peoples Bank, in a statement. "Our family has built Peoples over the past five decades with a focus on caring for our customers, employees and the communities we serve. We found those same values at NBH and are proud to partner with the NBH family."

Peoples shareholders will receive approximately $36.3 million of cash consideration and approximately 3.4 million shares of National Bank Holdings common stock, subject to certain potential adjustments, under the terms of the agreement. The transaction has a value of $143 million in the aggregate, based on NBH's closing price of $31.55 on June 23, 2017, according to a statement from the company. In addition, 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.

Bank of America, State Street Corporation, Goldman Sachs Group and AQR Capital Management are among the company's top shareholders.

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

The board of directors of each company and Peoples Bank shareholders have approved the deal, according to the statement.

- Staff report

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