Merger includes two local banks

Print Article

  • Gustavel

  • 1

    Bobbitt

  • Gustavel

  • 1

    Bobbitt

A Billings, Mont.-based community bank with more than 120 branches throughout six states will acquire two Kootenai County banks and expand its presence in Idaho.

First Interstate BancSystem, Inc. announced the signing of two merger agreements, one with Idaho Independent Bank, headquartered in Coeur d’Alene, and another with Community 1st Bank, headquartered in Post Falls. The banks will merge into First Interstate Bank.

“We are excited to announce these partnerships that build upon our growing commitment to Idaho,” Kevin Riley, chief executive officer and president of First Interstate, said in a press release Thursday. “Idaho Independent Bank and Community 1st bring solid and experienced bankers and each have a commitment to clients very similar to First Interstate.

Founded in 1993, Idaho Independent Bank (IIB) is a full-service community bank, with approximately $725 million in assets, $362 million in loans, $610 million in deposits, and $69 million in shareholders’ equity at June 30, 2018. IIB operates 11 branches throughout Idaho, with a large presence in both the greater Boise-Nampa area and the Coeur d’Alene markets.

Community 1st Bank has three locations in North Idaho with $130 million in assets, $78 million in loans, $116 million in deposits, and $13 million in shareholders’ equity at June 30, 2018.

“Both are a great fit for us geographically, strategically, financially, and culturally. Idaho Independent Bank and Community 1st Bank both share an operating philosophy, commitment to community banking, and view of corporate responsibility similar to us, which should allow for a seamless integration of our companies,” Riley said.

Both Idaho Independent Bank and Community 1st Bank have achieved compound annual loan growth of greater than 9 percent since 2013, he said.

Pro forma including both acquisitions, First Interstate will have approximately $14.1 billion in total assets, $8.9 billion in total loans, $11.4 billion in total deposits, and $1.8 billion in shareholders’ equity.

Subject to the terms of the Idaho Independent Bank merger agreement, IIB stockholders will receive 0.5 First Interstate Class A common shares per IIB share, or approximately 3.87 million First Interstate shares in aggregate. Using a price per share of First Interstate Class A common stock of $45.45 per share as of Oct. 5, 2018, the transaction results in an implied purchase price of $22.73 per share, which equates to an aggregate value of $181.3 million, including $5.4 million in cash consideration for option holders.

“We are excited to join the First Interstate team and look forward to the opportunities and benefits this combination will bring to our clients, employees, and shareholders,” said Jack Gustavel, executive chairman and founder of IIB. As part of the transaction, Kurt Gustavel will be retained by First Interstate and serve as Regional President for Idaho and Eastern Washington.

Subject to the terms of the Community 1st Bank merger agreement, Community 1st stockholders will receive 0.3784 First Interstate Class A common shares per Community 1st Bank share, or approximately 0.46 million First Interstate shares in aggregate. Using a price per share of First Interstate Class A common stock of $45.45 per share as of Oct. 5, 2018, the transaction results in implied purchase price of $17.20 per share, which equates to an aggregate value of $21.5 million, including $0.6 million in cash consideration for option holders.

“Our bank has a long-standing history of service excellence and giving back to the community,” said David Bobbitt, chairman and chief executive officer of CMYF. “First Interstate Bank is just the right partner to extend and build upon this proud legacy.”

First Interstate expects the transactions will result in annual earnings per share (EPS) accretion of over 3 percent in the first full year after acquisition and beyond. First Interstate is expected to recover the minimal tangible book value dilution resulting from these transactions in less than two years.

Completion of the mergers is subject to customary closing conditions and the approval of stockholders of Idaho Independent Bank and Community 1st Bank.

Each of the transactions is expected to close and convert its data processing systems to First Interstate in the first half of 2019. Neither transaction is conditioned on the completion of the other.

Print Article

Read More Business

Stocks partly erase early losses as trading remains shaky

AP

October 17, 2018 at 11:44 am | NEW YORK (AP) — U.S. stocks are slipping Wednesday after the Federal Reserve said some of its policymakers argued that the central bank should raise interest rates to a level that slows economic grow...

Comments

Read More

Twitter airs election meddling data

AP

October 17, 2018 at 11:44 am | NEW YORK (AP) — Twitter is releasing all known accounts and posts related to "information operations" dating back to 2016, when it was first learned that foreign operators were using social media to ...

Comments

Read More

Stocks head lower, giving back some of a big rally

AP

October 17, 2018 at 8:40 am | NEW YORK (AP) — U.S. stocks are falling Wednesday after their biggest gain in more than six months. Homebuilders are sinking after the Commerce Department said construction of new homes dropped in Se...

Comments

Read More

Trump starts leaving postal union in latest anti-China move

AP

October 17, 2018 at 7:26 am | WASHINGTON (AP) — President Donald Trump is initiating the process of leaving the Universal Post Union, which sets flat rates for international postage. That's according to two administration off...

Comments

Read More

Contact Us

(208) 664-8176
215 N. Second St
Coeur d'Alene, Idaho 83814

©2018 The Coeur d'Alene Press Terms of Use Privacy Policy
X
X