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First Interstate BancSystem, Inc., parent company of First Interstate Bank and Inland Northwest Bank, announced that it will acquire Idaho Independent Bank (IIB), headquartered in Coeur d’Alene, Idaho, and  Community 1st Bank (CMYF) headquartered in Post Falls, Idaho. Upon completion of each acquisition, the banks will merge into First Interstate Bank.

Founded in 1993, IIB is a full-service community bank, with approximately $725 million in assets, $362 million in loans, $610 million in deposits, and $69 million in shareholders’ equity at June 30, 2018. IIB operates 11 branches throughout Idaho, with a large presence in both the greater Boise-Nampa area and the Coeur d’Alene markets. 
CMYF has three locations in North Idaho with $130 million in assets, $78 million in loans, $116 million in deposits, and $13 million in shareholders’ equity at June 30, 2018. 
Each transaction complements First Interstate’s existing footprint, which spans six states (Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming).
Pro forma including both acquisitions, First Interstate will have approximately $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. 
Subject to the terms of the IIB merger agreement, IIB stockholders will receive 0.5 First Interstate Class A common shares per IIB share, or approximately 3.87 million First Interstate shares in aggregate. Using a price per share of First Interstate Class A common stock of $45.45 per share of October 5, 2018, the transaction results in an implied purchase price of $22.73 per share, which equates to an aggregate value of $181.3 million, including $5.4 million in cash consideration for option holders.
Subject to the terms of the CMYF merger agreement, CMYF stockholders will receive 0.3784 First Interstate Class A common shares per CMYF share, or approximately 0.46 million First Interstate shares in aggregate. Using a price per share of First Interstate Class A common stock of $45.45 per share as of October 5, 2018, the transaction results in implied purchase price of $17.20 per share, which equates to an aggregate value of $21.5 million, including $0.6 million in cash consideration for option holders.
First Interstate expects the transactions will result in annual earnings per share accretion of over 3% in the first full year after acquisition and beyond.  First Interstate is expected to recover the minimal tangible value  resulting from these transactions in less than two years.