Two great, Utah-owned banks will soon join forces as BOU Bancorp, Inc., the holding company for Bank of Utah, plans to purchase AmBancorp, the holding company for American Bank of Commerce.
Douglas L. DeFries, president and CEO of BOU Bancorp, Inc., announced that both boards of directors have approved the merger and a definitive agreement has been signed. The transaction will be subject to approval by regulators and AmBancorp shareholders and is expected to close in the fourth quarter of 2018. The three AmBank locations, with over $75 million in deposits, will bear the Bank of Utah name in Lindon, Provo and Heber City, Utah following the purchase. This will be the fifth acquisition in Bank of Utah’s history.
Bank of Utah currently operates 14 full-service bank branches, additional mortgage offices in St. George, Price, Logan and Sandy, and trust services in both Ogden and Salt Lake City, Utah. The merger will increase Bank of Utah’s presence in Utah County by adding two more retail branches and will add the first Bank of Utah branch in Wasatch County.
“The union of these two great Utah organizations will provide a strong set of local banking experts and the most up-to-date products and services for individuals and businesses in what will be 17 deposit branches from Logan to Provo,” said DeFries. “We are very pleased to create a stronger, independent, Utah-based network of retail bank branches, with combined assets of over $1.4 billion.”
“The partnership with Bank of Utah allows our trusted bankers to continue offering locally processed and financed commercial and residential loans, with the significant new benefit of more robust cash management services and greater choice in deposit accounts and online banking,” noted Leonel E. Castillo, president and CEO of AmBancorp. “Further, our customers will now enjoy trust services, including self-directed IRAs, insurance offerings, wealth management, larger lending limits and other excellent services. We are confident that our customers and staff will experience a smooth transition and will soon greatly appreciate the new opportunities available.”
BOU Bancorp, Inc. was advised in the transaction by Keefe, Bruyette & Woods, A Stifel Company, as financial advisor, and Hunton Andrews Kurth LLP as legal counsel. AmBancorp was advised by Sandler O’Neill + Partners, L.P. as financial advisor and Jones Waldo Holbrook & McDonough, PC as legal counsel.