North Cascades Bancshares, Inc., the parent company of North Cascades National Bank (NCNB) has signed a definitive agreement to merge with Glacier Bancorp of Kalispell, Montana, a news release stated last week.
NCNB will be merged into Glacier Bank and operate as a separate bank division doing business under its existing name, officials stated. The NCNB board of directors, management and employees will remain in place under the new ownership.
“As part of Glacier Bank, our customers will benefit from an expanded line of service offerings and much higher loan limits, said Scott Anderson, NCNB’s president and chief executive officer. “We’re excited to become part of their well respected and highly successful community banking organization. We are also glad that our customers will deal with the same great employees that they have come to know and trust.”
The boards of Glacier and North Cascades Bancshares, Inc., unanimously approved the transaction, which is subject to regulatory approval, approval of North Cascades shareholders and other customary conditions of closing.
The transaction, expected to close July 31, this year, provides for the payment to North Cascades Bancshares, Inc. shareholders of $13.55 million in cash and 874,194 shares of Glacier common stock, so long as the average price of Glacier stock before closing the transaction is between $13 and $18 a share.
Based on the closing price of $18.85 for Glacier shares on March 27, the transaction would result in the delivery of 834,774 shares, an aggregate value of $29.3 million, or $8.92 for each share of North Cascades common stock.
The per share consideration is subject to change as the price of Glacier stock fluctuates prior to closing and for other closing conditions.
“Our shareholders that elect Glacier stock will benefit from a highly liquid stock that has had a long history of paying dividends,” according to John McQuaig, chairman of the board at NCNB.
“We are delighted to be adding North Cascades National Bank to the Glacier family of banks, stated Mick Blodnick, Glacier’s president and CEO.
NCNB has nine branches around central Washington in Chelan, Wenatchee, East Wenatchee, Omak, Brewster, Twisp, Okanogan, Grand Coulee and Waterville.