Sterling Financial Corp., Spokane, Wash., has a deal to buy Big Sky Bancorp, Hamilton, Mont., for $12.7 million of stock.
The deal would boost $1.9 billion-asset Sterling's presence in Montana, where it does business through its leasing and mortgage subsidiaries but currently has no bank. Big Sky, the holding company of $62 million-asset First Federal Savings and Loan Association, has two branches in western Montana.
"This merger fits well within our strategy of being a leading community bank in the Northwest," said Harold B. Gilkey, Sterling's chairman and chief executive officer. "First Federal is positioned in the highest-growth area of Montana."
Mr. Gilkey said he expects the deal-valued at 1.6 times Big Sky's book value-to close during the third quarter.