Bank of the San Juans will continue to grow its presence in Colorado Springs following its October purchase of Cañon National Bank, said President and CEO Art Chase.
“We’d like to expand in Colorado Springs, whether through an acquisition or opening new branches,” he said.
Based in Durango, Bank of the San Juans has a total of 22 branches with the new acquisition and $840 million in assets with branches primarily in small communities, including Hayden, Meeker, Pagosa Springs, Florence and Colorado City.
It is a division of Glacier Bancorp, a Kalispell, Mont.-based institution holding $9.1 billion in assets, fourth on the Forbes list of top 100 banks in the nation. It has banks in 88 communities in Montana, Idaho, Utah, Washington, Wyoming and Colorado.
Glacier entered the Colorado market when it purchased Bank of the San Juans in December 2008. Glacier’s Colorado division also includes the Grand Junction’s former First Bank of the Rockies with 10 branches.
Last year’s purchase of 41-year-old Cañon National brought Glacier to Colorado Springs, Pueblo and Cañon City. Colorado Springs is now Glacier’s largest market with local branches at 518 Chelton Circle and 3204 W. Colorado Ave.
Cañon Bank Corp. shareholders received $16.25 million in cash and 554,229 shares of Glacier common stock as part of the purchase agreement. The transaction resulted in a total value of $31.8 million, according to Glacier. As of June 30, 2015, Cañon Bank Corp. had consolidated tangible equity of $21.4 million.
Cañon National Bank fit well into Glacier’s business model, Chase said.
“It was a very profitable, well-managed bank with great locations in Southern Colorado,” he said. “That’s typically what Glacier looks for in an acquisition.”
The acquisition marked the corporation’s 17th since 2000 and its fifth in the past 30 months, according to news from Glacier. It has since purchased Treasure State Bank in Missoula, Mont.
The Glacier purchase gives Colorado Springs residents more choice for business loans, personal loans and deposits, said Don Childears, president and CEO of the Colorado Bankers Association.
“They are a smart, well-run company, a quality organization,” he said. “We like the way they operate.”
The bank “really want[s] to make more of a splash in Colorado Springs in the near future,” said Jesse Spaeth, now market president for Bank of the San Juans after serving in a similar role for Cañon National Bank. “They’re very community-oriented.”
Loans at the local branch have increased to $60 million from around $50 million in the seven months since Bank of the San Juans acquired Cañon National.
“We’ve been doing a lot of business lending in Denver,” Spaeth said. “For example, last month, we closed on a $4 million line of credit for a transportation company, and that is something we probably wouldn’t have done before as Cañon National Bank.”
Income for first quarter 2016
Income increase year-over-year
Total amount of loans for first quarter
Loan increase year-over year
Acquisitions since 2000
Acquisitions in the past 30 months
(source: Securities and Exchange Commission)