Denver-based InBankshares Corp. and Legacy Bank, based in Wiley, plan to merge in a deal that will result in $1.2 billion of total assets and 14 offices in Colorado and five in northern New Mexico.
The companies said Wednesday that Legacy will merge into InBank, the wholly owned subsidiary of InBankshares Corp. The stock and cash transaction is expected to close early in the second quarter of 2022.
The merger is subject to approval by federal and state bank regulators and Legacy shareholders.
“We are excited to announce this partnership that expands upon our commitment to serving the Colorado Front Range and northern New Mexico markets by adding new and important growth markets to InBank’s footprint,” Ed Francis, board chairman, president and CEO for InBankshares and InBank, said in a statement.
Dave Esgar, board chairman, president and CEO of Legacy Bank, said InBank is the right partner to build upon the bank’s history as a locally managed community bank.
“Our family looks forward to the strategic partnership and success that we believe the combined bank will have moving forward,” Esgar said.
Legacy Bank, founded in 1907, is a full-service community bank with approximately $497 million in total assets, $316 million in gross loans and $426 million in deposits as of Sept. 30. The bank has nine full-service offices in Colorado Springs, Pueblo, Pueblo West, Cañon City, Buena Vista, Lamar and Wiley.
InBank, headquartered in Denver, is a full-service commercial bank with $705 million in total assets, $426 million in gross loans and $603 million in deposits as of Sept. 30.
Under the terms of the agreement, unanimously approved by both banks’ boards, InBankshares will issue 3.56 million shares of its common stock and pay $21.25 million in cash to the shareholders of Legacy Bank in the aggregate. Based on InBankshare’s closing common stock price of $9.75 per share on Nov. 29, the consideration to be paid by is valued at about $56.0 million.
Before the closing of the merger, Legacy will distribute to its shareholders owned real estate and other assets, and will pay its shareholders a special cash dividend.
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