First Interstate BancSystem Inc. in Billings, Mont., has made a deal to buy First Western Bancorp Inc. in Huron, S.D., for $251 million in cash and stock.
The $4.9 billion-asset First Interstate said in a Securities and Exchange Commission filing Wednesday that it would pay about $201 million in cash and issue 5,000 shares of stock collectively worth $50 million to First Western shareholders.
To help finance the deal, First Interstate plans to raise $151 million, either through senior notes, subordinated debentures, trust-preferred securities or a through a combination of sources.
First Western operates three subsidiaries: the $395 million-asset First Western Bank Sturgis; the $494 million-asset First Western Bank in Huron; and First Western Data Inc. The deal is expected to close in the first quarter of 2008.
