First Interstate bulks up in Idaho with two bank acquisitions
First Interstate BancSystem in Billings, Mont., has agreed to buy two banks in Idaho.
The $12.2 billion-asset company said in a press release Thursday that it will buy Idaho Independent Bank in Coeur d’Alene and Community 1st Bank in Post Falls. The deals are expected to close in the first half of 2019.
First Interstate said it will pay $181.3 million for Idaho Independent and $21.5 million for Community 1st.
Idaho Independent has 11 branches, $725 million in assets, $362 million in loans and $610 million in deposits. Community 1st has three branches, $130 million in assets, $78 million in loans and $116 million in deposits.
“We are excited to announce these partnerships that build upon our growing commitment to Idaho,” Kevin Riley, First Interstate’s president and CEO, said in the release. The acquisitions “will further leverage our significant investment in people, processes, and technology while positioning First Interstate as a leading institution in Idaho’s fastest growing markets.”
First Interstate said it expects the transactions to be 3% accretive to its earnings per share in the first full year after closing. It should take less than two years to earn back any dilution to First Interstate’s tangible book value.
Piper Jaffray and Luse Gorman advised First Interstate. Sandler O’Neill and Witherspoon Kelley advised Idaho Independent. D.A. Davidson and Breyer & Associates advised Community 1st.