On October 11, 2018, First Interstate BancSystem, Inc. (“First Interstate”), Billings, Montana, the holding company for First Interstate Bank (the “Bank”), announced that it had entered into separate definitive merger agreements with each of Idaho Independent Bank (“IIB”), Coeur d’Alene, Idaho, and Community 1st Bank (“Community”), Post Falls, Idaho, pursuant to which IIB and Community will each merge into the Bank, with the Bank as the resulting institution. IIB stockholders will receive 0.50 shares of First Interstate Class A common stock per share of IIB common stock for total merger consideration of approximately $181.3 million. Community stockholders will receive 0.3784 shares of First Interstate Class A common stock per share of Community common stock for total merger consideration of approximately $21.5 million.
Luse Gorman served as legal counsel to First Interstate and the Bank in the transactions. The Luse Gorman team consisted of Scott A. Brown, Lawrence M.F. Spaccasi, Gregory Sobczak and Zachary Davis (Corporate/M&A) and Max Seltzer and Brendan Saxon (Executive Compensation).
First Interstate has approximately $12.2 billion in total assets and is the parent company of the Bank and of Inland Northwest Bank, which was acquired by First Interstate in August 2018. The Bank operates over 120 banking offices, including online and mobile banking services, throughout Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. Inland Northwest Bank operates 20 banking offices in Idaho, Oregon, and Washington.
IIB was established in 1993 and has approximately $725.0 million in assets. IIB operates branches in Boise, Caldwell, Coeur d’Alene, Hayden, Meridian, Mountain Home, Nampa, Star, and Sun Valley/Ketchum, Idaho.
Community was established in 2007 and has approximately $129.8 million in total assets. Community serves customers throughout North Idaho with three full-service branch locations in Post Falls and Coeur d’Alene.