First Interstate BancSystem, Inc., is strengthening its presence in Idaho through a pair of separate acquisitions worth more than $200 million: Idaho Independent Bank and Community 1st Bank.
Coeur d’Alene-based Idaho Independent has $725 million in assets, $362 million in loans, $610 million in deposits, and $69 million in shareholders’ equity as of June 30. IIB operates 11 branches throughout Idaho, with a large presence in both the greater Boise-Nampa area and the Coeur d’Alene markets. The IIB deal is worth $181.3 million.
CMYF has three locations in northern Idaho with $130 million in assets, $78 million in loans, $116 million in deposits, and $13 million in shareholders’ equity as of June 30. The dealf for the Post Falls-based CMYF is worth $21.5 million.
“Expanding in Idaho will increase the growth profile of our franchise by adding to our presence in higher growth markets,” said Kevin Riley, president and CEO of Billings, Mont.-based First Interstate. Both are a great fit for us geographically, strategically, financially, and culturally…. Idaho Independent Bank and Community 1st Bank have achieved compound annual loan growth of greater than 9% since 2013. We believe the addition of these attractive franchises will positively impact our balance sheet growth and earnings potential.”
Both of the transactions are expected to close and convert their data processing systems to First Interstate in the first half of 2019. Following the close, First Interstate will have about $14.1 billion in total assets, $8.9 billion in total loans, $11.4 billion in total deposits, and $1.8 billion in shareholders’ equity.
The First Interstate expects the transactions will result in annual earnings per share accretion of over 3 percent in the first full year after acquisition and beyond. First Interstate is expected to recover the minimal tangible book value dilution resulting from these transactions in less than two years.
Piper Jaffray & Co. served as financial advisor and Luse Gorman, PC served as legal counsel to First Interstate. Sandler O’Neill & Partners, L.P. served as financial advisor and Witherspoon Kelley served as legal counsel to IIB. D.A. Davidson & Co. served as financial advisor and Breyer & Associates PC served as legal counsel to CMYF.