Triumph Bancorp, Inc. announced that it has signed definitive agreements to acquire First Bancorp of Durango, Inc. and Southern Colorado Corp. The company also announced the entry into an asset purchase agreement by Advance Business Capital d/b/a Triumph Business Capital to acquire the transportation factoring assets of Interstate Capital Corporation (Interstate Capital).
“Collectively, these acquisitions reflect our business strategy of pairing unique commercial finance asset generation with core deposit funding and are expected to generate strong financial results for the Company’s stakeholders,” said Aaron P. Graft, vice chairman and chief executive officer of Triumph Bancorp.
First Bancorp of Durango and Southern Colorado Corp Acquisitions
First Bancorp of Durango is a bank holding company with $646 million in total assets as of December 31, 2017. Its wholly-owned community banking subsidiary, The First National Bank of Durango, serves consumers and businesses from four branches in Durango, Colorado and one branch in Bayfield, Colorado. Its wholly-owned subsidiary, Bank of New Mexico, serves consumers and businesses from three branches in Albuquerque, Gallup and Grants, New Mexico.
Southern Colorado Corp. is a bank holding company with $88 million in total assets as of December 31, 2017. Its wholly-owned community banking subsidiary, Citizens Bank of Pagosa Springs, serves consumers and businesses from its two branches in Pagosa Springs, Colorado.
“We are really excited about the acquisitions of The First National Bank of Durango, Bank of New Mexico and Citizens Bank of Pagosa Springs,” said Graft. “As a result of these transactions, TBK Bank’s presence will be among the largest in the state of Colorado. The Bank of New Mexico acquisition also extends our market reach into New Mexico, which we hope to grow in the future. In all of our new markets, we are committed to serving our new customers with the excellence and personalized service to which they are accustomed.”
“We are pleased to have in TBK a partner as committed to community banking as we are,” said Mark Daigle, president and chief executive officer of The First National Bank of Durango. “It is evident that TBK Bank strongly supports the communities in which they operate. It is also evident that TBK Bank places a high value on all of its customer relationships and team members.”
“We believe partnering with TBK Bank will increase our ability to provide value and resources to the people, businesses and communities we serve,” said Clemente Sanchez, chairman, president and chief executive officer of Bank of New Mexico.
“As a part of TBK Bank, we will offer a wider range of products and services,” said James L. Smith, president and chief executive officer of Citizens Bank of Pagosa Springs. “TBK Bank has expressed a commitment to continue community lending in Pagosa Springs.”
Following the close of the transactions, The First National Bank of Durango, Bank of New Mexico and Citizens Bank of Pagosa Springs will be merged into the Company’s subsidiary bank, TBK Bank, SSB, with the resulting institution operating under the TBK Bank brand name.
These transactions have been unanimously approved by the Boards of Directors of Triumph Bancorp, First Bancorp of Durango and Southern Colorado Corp., and are subject to customary closing conditions, including receipt of required regulatory approvals. The transactions are expected to close during the third quarter of 2018.
Triumph Bancorp was advised in this transaction by Wachtell, Lipton, Rosen & Katz as legal counsel and Stephens Inc. and Evercore as financial advisors. Sullivan & Cromwell LLP acted as legal counsel and Hovde Group, LLC acted as financial adviser to First Bancorp of Durango and Southern Colorado Corp.
Interstate Capital Acquisition
Interstate Capital is one of North America’s leading invoice factoring companies with offices located in El Paso, Texas and Santa Teresa, New Mexico. Since 1993, Interstate Capital has focused on helping small and medium-sized businesses succeed and grow.
“Adding Interstate Capital’s team members, processes and business network to Triumph Business Capital creates one of, if not the, strongest transportation factoring platform in the United States,” said Graft. “We are proud to be associated with trucking, and this transaction specifically furthers our role in meeting the working capital needs of the small business owners who keep America moving forward.”
“The entire ICC team is very excited about becoming a part of the Triumph organization,” said Cliff Eisenberg, the chief executive officer of Interstate Capital Corporation. “This transaction will allow us to better meet the challenges of the future and take advantage of the many opportunities for servicing the financial needs of small and medium sized businesses. The combining of the resources of the two companies makes for a stronger enterprise – we are definitely stronger together. This is certainly a case where the whole has greater value than the pieces individually.”
Tony Furman, the president of Interstate Capital Corporation added, “Working alongside Cliff Eisenberg and Louis Cohen, our vice president, for 25 years has been the highlight of my career and a personal pleasure. Now, I look forward with eager anticipation, to the joining of our respective teams, and two storied companies, that are uniquely compatible.”
Upon close of the transaction, Interstate Capital will operate as Interstate Capital, a Triumph company. The staff of Interstate Capital will become employees of Triumph Business Capital immediately following the close of the acquisition.
This transaction has been unanimously approved by the Boards of Directors of Triumph Bancorp and Interstate Capital, and is subject to customary closing conditions, including required regulatory notices. The transaction is expected to close during the second quarter of 2018.
Triumph Bancorp was advised in this transaction by Wachtell, Lipton, Rosen & Katz as legal counsel. Kemp Smith LLC acted as legal counsel, and Hovde Group, LLC and Houlihan Lokey acted as financial adviser to Interstate Capital.