Officials at First Interstate Bank in Billings have signed merger agreements with two banks based in Coeur d'Alene and Post Falls, Idaho.
The agreement was announced today by the banks. Idaho Independent Bank, headquartered in Coeur d'Alene, was founded in 1993 and holds $725 million in assets. Idaho Independent has 11 branches throughout Idaho, with the majority situated around the Boise-Nampa area and Coeur d’Alene.
In Post Falls, Community 1st Bank has three locations in northern Idaho and holds $130 million in assets.
According to the agreement, the purchase price of Idaho Independent was $181.3 million and Community 1st was $21.5 million.
It's the second big merger announcement this year by First Interstate Bank. In April, the bank signed a deal to purchase the Spokane-based Northwest Bancorp., parent company of Inland Northwest Bank, for $160.9 million.
All three banks will be owned by First Interstate Bank's parent company, First Interstate BancSystem. With the acquisition of Idaho Independent and Community 1st, First Interstate will have approximately $14.1 billion in total assets.
"Idaho Independent Bank and Community 1st bring solid and experienced bankers and each have a commitment to clients very similar to First Interstate," Kevin Riley, Chief Executive Officer and President of First Interstate, said in a statement. "The combination 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 operates in Montana and five other western states, including Idaho, Oregon, South Dakota, Washington, and Wyoming.
"We believe the addition of these attractive franchises will positively impact our balance sheet growth and earnings potential," Riley said. "We are excited to deepen our presence throughout Idaho, and look forward to welcoming our new clients and employees to the First Interstate family."