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Zions' Arm to Acquire Four FirstBank Branches, Boost Presence
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Zions Bancorporation’s (ZION - Free Report) arm, California Bank & Trust (CB&T), has agreed to acquire four branches from California-based FirstBank.
Details of Acquisition Pursued by ZION
Per the agreement, CB&T will take over roughly $730 million in deposits and $420 million in loans. The deal is anticipated to be completed in the first quarter of 2025, subject to customary approvals.
Further, CB&T will offer employment opportunities to California-based FirstBank employees in its existing team of more than 900 associates.
These branches will continue to operate as FirstBank branches, which will be re-branded as California Bank & Trust upon the completion of the deal. The branches are located in Palm Desert and Indio.
ZION’s Rationale Behind This Acquisition
This move will expand the company’s physical presence in Coachella Valley to six locations and add roughly 15,000 new customers, leading to a combined 7% market share in the region.
Eric Ellingsen, president and CEO of Zions’ arm CB&T, said, “This transaction provides us a team of accomplished banking professionals, four attractive and well-located branches, a sizable customer base and a great deposit franchise.”
This strategic initiative aligns with Zions' growth strategy to deepen its footprint and expand market share in the targeted regions. In 2022, the company acquired three Northern Nevada City National Bank branches and their associated deposit, credit card and loan accounts through its division, Nevada State Bank.
Zions’ Zacks Rank & Price Performance
Year to date, shares of Zions have risen 7.8% compared with the industry’s rise of 8.6%.
Earlier this month, Camden National Corp. (CAC - Free Report) signed an agreement to acquire Northway Financial, Inc. in an all-stock transaction valued at roughly $86.6 million.
CAC will likely benefit from expected cost savings of 35% of Northway’s non-interest expense, 75% of which will be phased in 2025, and the rest will be realized thereafter. The entire restructuring costs will be realized upon the completion of the transaction.
The deal is anticipated to be 19.9% and 32.7% accretive to CAC’s 2025 and 2026 earnings per share, respectively, assuming the phased-in cost savings. Also, tangible book value is expected to be diluted by 16.2%, with a projected earn-back period of approximately 3.3 years.
Similarly, ConnectOne Bancorp, Inc. (CNOB - Free Report) agreed to acquire The First of Long Island Corp. (FLIC). The all-stock transaction is valued at $284 million.
CNOB will likely benefit from expected cost-savings of 35% of FLIC’s non-interest expense, 50% of which will be phased in 2025, and the rest will be realized thereafter.
The deal is anticipated to be 36% accretive to CNOB’s 2025 earnings per share, assuming the execution of cost-savings. Also, tangible book value is expected to be diluted by 12% with a projected earn-back period of approximately 2.9 years.
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Zions' Arm to Acquire Four FirstBank Branches, Boost Presence
Zions Bancorporation’s (ZION - Free Report) arm, California Bank & Trust (CB&T), has agreed to acquire four branches from California-based FirstBank.
Details of Acquisition Pursued by ZION
Per the agreement, CB&T will take over roughly $730 million in deposits and $420 million in loans. The deal is anticipated to be completed in the first quarter of 2025, subject to customary approvals.
Further, CB&T will offer employment opportunities to California-based FirstBank employees in its existing team of more than 900 associates.
These branches will continue to operate as FirstBank branches, which will be re-branded as California Bank & Trust upon the completion of the deal. The branches are located in Palm Desert and Indio.
ZION’s Rationale Behind This Acquisition
This move will expand the company’s physical presence in Coachella Valley to six locations and add roughly 15,000 new customers, leading to a combined 7% market share in the region.
Eric Ellingsen, president and CEO of Zions’ arm CB&T, said, “This transaction provides us a team of accomplished banking professionals, four attractive and well-located branches, a sizable customer base and a great deposit franchise.”
This strategic initiative aligns with Zions' growth strategy to deepen its footprint and expand market share in the targeted regions. In 2022, the company acquired three Northern Nevada City National Bank branches and their associated deposit, credit card and loan accounts through its division, Nevada State Bank.
Zions’ Zacks Rank & Price Performance
Year to date, shares of Zions have risen 7.8% compared with the industry’s rise of 8.6%.
Image Source: Zacks Investment Research
Currently, ZION carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Steps by Other Banks
Earlier this month, Camden National Corp. (CAC - Free Report) signed an agreement to acquire Northway Financial, Inc. in an all-stock transaction valued at roughly $86.6 million.
CAC will likely benefit from expected cost savings of 35% of Northway’s non-interest expense, 75% of which will be phased in 2025, and the rest will be realized thereafter. The entire restructuring costs will be realized upon the completion of the transaction.
The deal is anticipated to be 19.9% and 32.7% accretive to CAC’s 2025 and 2026 earnings per share, respectively, assuming the phased-in cost savings. Also, tangible book value is expected to be diluted by 16.2%, with a projected earn-back period of approximately 3.3 years.
Similarly, ConnectOne Bancorp, Inc. (CNOB - Free Report) agreed to acquire The First of Long Island Corp. (FLIC). The all-stock transaction is valued at $284 million.
CNOB will likely benefit from expected cost-savings of 35% of FLIC’s non-interest expense, 50% of which will be phased in 2025, and the rest will be realized thereafter.
The deal is anticipated to be 36% accretive to CNOB’s 2025 earnings per share, assuming the execution of cost-savings. Also, tangible book value is expected to be diluted by 12% with a projected earn-back period of approximately 2.9 years.