First Interstate BancSystem (FIBK) in Billings, Mont., has agreed to buy Mountain West Financial (MTWF) in Helena, Mont.
First Interstate will pay about $73 million in cash and stock, or $13.45 a share, for the $647 million-asset Mountain West.
Mountain West "is a community bank whose success has been built on a foundation of commitment to its customers and communities," Tom Scott, First Interstate's chairman, said in a press release late Monday. "Bringing these two companies together gives us the opportunity to expand our state-wide market in Montana and provides us with a solid presence in the Helena Market. We're confident this acquisition will create long-term value for both companies."
The $7.6 billion-asset First Interstate said it expects to have the top deposit market share in Montana when it completes the acquisition in mid-2014. It also expects the deal to be immediately accretive to earnings per share.
First Interstate was advised by Sandler O'Neill, Christian Samson Jones and Holland & Hart. Mountain West was advised by D.A. Davidson and Fredrikson & Byron.
