First Interstate Says $34 Million Flathead Bank Acquisition Will Be Immediately Accretive To Its EPS

First Interstate Bancystem Inc FIBK, a regional bank with operations in Montana, Wyoming, and South Dakota, announced after Wednesday's market close it has agreed to acquire Flathead Bank, a fellow regional bank with operations in Montana.

Shares of First Interstate were trading lower by nearly 2 percent on Thursday.

First Interstate will pay $34.2 million in cash to acquire Flathead Bank. The company expects the acquisition to be immediately accretive to its earnings per share and will result in all Flathead Bank locations becoming branches of First Interstate Bank.

The deal has already been approved unanimously by the Board of Directors of both companies.

"Flathead Bank is a locally-owned banking organization that shares our corporate values and emphasis on community banking and community reinvestment," said First Interstate President and CEO, Kevin Riley. "Bringing our two companies together gives us the opportunity to expand our state-wide market in Montana and provides us with a solid presence in the Gallatin and Flathead markets. We're confident this acquisition will create long-term value for both companies, our customers, our employees, our communities and our shareholders."

Flathead Bank Chairman Larry Jochim commented, "Flathead Bank is very appreciative of the community support it has received over the past 45 years in Bigfork, Lakeside, Kalispell, Cut Bank, Belgrade and Ennis. Now, we are looking forward to becoming part of the First Interstate family." Mr. Jochim further stated, "First Interstate is a respected company with deep roots in Montana and is known for its progressive posture and philanthropic support of the communities it serves. We are confident the merger of our bank with First Interstate will provide our customers with many new benefits including new banking products, increased lending limits and convenient statewide access to banking services. In addition, our customers will be able to continue their banking relationships with staff they've come to know and trust at Flathead Bank."