National Bank Holdings Corp., the parent company of NBH Bank, and Peoples Inc. have entered into a definitive agreement for NBH to acquire Peoples, building the company’s scale in the Colorado Front Range and greater Kansas City regions.
According to the company, 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 over $1 billion of mortgage loans per year.
Under the terms of the agreement, Peoples shareholders will receive approximately $36.3 million of cash consideration and approximately 3.4 million shares of NBH common stock, subject to certain potential adjustments. The transaction, which is expected to close in the fourth quarter, has a value of $143 million in the aggregate, based on NBH’s closing price of $31.55 on June 23.
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, the company says.