Banking on the future
COEUR d'ALENE - The parent company of Columbia State Bank announced Thursday it will merge Sandpoint-based Intermountain Community Bancorp into its operations.
Intermountain's banking subsidiary, Panhandle State Bank, offers financial services in Coeur d'Alene, Post Falls, Sandpoint, Rathdrum, Kellogg, Bonners Ferry, Priest River and Ponderay.
The stock and cash transaction is valued at $121.5 million, or approximately $18.22 per share based on Columbia's stock price Wednesday. The acquisition is expected to close in the fourth quarter of this year.
The combined company will have approximately $8.2 billion in assets with more than 150 branches in Idaho, Washington and Oregon.
"We have stated for many years that it has long been our strategy to become the premier Pacific Northwest regional community bank," said Melanie J. Dressel, president and CEO of Columbia.
The parent company, Tacoma-based Columbia Banking System Inc., will now have a physical presence in Idaho.
"We have always felt that Idaho was an important part of that strategy and Intermountain, with their statewide presence, provides us with a substantial base to serve the Idaho market," Dressel said in a news release.
Curt Hecker, president and CEO of Intermountain, will continue with Columbia to lead the Idaho expansion.
"We believe the united institution will provide a host of benefits to our shareholders, customers and employees," Hecker said.
Under the terms of the merger agreement, Intermountain shareholders are entitled to receive 0.6 shares of Columbia common stock and $2.29 in cash for each share of Intermountain stock.
On Wednesday, Intermountain reported net income of $1.3 million, or 19 cents per diluted share, for the second quarter which ended June 30.
That compares with $1 million, or 16 cents a share, for the first quarter of this year, and $1.5 million, or 23 cents a share, for the year-earlier quarter.
Intermountain Community Bank Washington, a division of Panhandle State Bank, operates branches in downtown Spokane and Spokane Valley.
Other divisions of Panhandle State Bank - Magic Valley Bank and Intermountain Community Bank - operate Idaho branches in Twin Falls, Gooding, Weiser, Payette, Nampa, Caldwell, Fruitland, as well as in Ontario, Ore.
In August 2011, Columbia announced it acquired all deposits and certain assets of Colfax-based Bank of Whitman. That acquisition gave Columbia eight branches in Eastern Washington, including two in Spokane.